HDFC Bank Q3 Results Review - Better Than Expected NII Growth Offset By Elevated Opex: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.HDFC Bank Ltd.’s Q3 FY23 earnings were broadly inline with our estimates. Advance growth of less than 20% (due to QoQ corporate advance decline) and Rs 670 billion of retail deposit accretion momentum needs further push. Net interest income growth retraced better than expected to 24.6% YoY / 9.4% QoQ, partly supported by interest on income tax refund. This was offset by elevated opex being up 26.5% YoY / 11% QoQ. HDFC Bank's continued investment in branches and employees led to an elevated opex-to-assets ratio of ~2.2%. Further supported by treasury gains of Rs 2.6 billion and credit cost at mere 74 bps, profit after tax grew 18.5% YoY / 15.6% QoQ to Rs 122.6 billion. Gross non-performing assets stayed put at 1.23% despite seasonal stress flowing from agri. Core operating profit grew 19.3% YoY / 6.3% QoQ. HDB Financial Services’ earnings, too, reflected pick-up in growth traction and asset quality improvement..Click on the attachment to read the full report:.More Research Reports On HDFC Bank's Q3 FY23 Results Review.Stable Quarter; Slight Surprise On Net Interest Income: Dolat CapitalBeat In Estimates; Deposits Accretion Remains Key: ICICI DirectCredit Growth Slightly Down; Stable Net Interest Margins: IDBI CapitalInline Earnings; Core PPoP Growth Improves: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Bank Q3 Results Review - Better Than Expected NII Growth Offset By Elevated Opex: ICICI Securities

Net interest income growth retraced better than expected to 24.6% YoY/9.4% QoQ, partly supported by interest on income tax refund.

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