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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.
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More Research Reports On HDFC Bank's Q3 FY23 Results Review
Stable Quarter; Slight Surprise On Net Interest Income: Dolat Capital
Beat In Estimates; Deposits Accretion Remains Key: ICICI Direct
Credit Growth Slightly Down; Stable Net Interest Margins: IDBI Capital
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