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Prabhudas Lilladher Report
HDFC Bank Ltd. saw a good quarter with core profit after tax of Rs 118 billion beating our estimate by ~6% led by stronger net interest income and other income (excluding treasury) while provisions were lower.
Net interest margin was higher by 11 bps at 4.84% due to superior yields driven by faster asset repricing, while cost of funds was a tad lesser. Retail wholesale mix improved QoQ from 43:57 to 45:55 led by stronger retail accretion (due to healthy consumption spends) and de-growth in corporate (owing to pricing pressure and widening bond spreads).
Retail deposit accretion was strong at 5% QoQ and its share is now 84% (80% in March 2022).
HDFC Bank added 684 branches in Q3 FY23 while it intends to add 600 more branches in Q4 FY23 which would keep opex elevated. We upgrade FY23 earnings by 3% led by higher NII and lower provisions.
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More Research Reports of HDFC Bank's Q3 FY23 Results Reviews
Wholesale Loans De-grow Due To Unattractive Pricing: Yes Securities
In A Capex Investment Mode; Opex Could Remain Elevated: Systematix
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
Inline Earnings; Core PPoP Growth Improves: Motilal Oswal
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