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.
Dolat Capital Report
HDFC Bank Ltd. posted a good quarter with strong net interest income growth of 24% YoY/9% QoQ). Even after excluding one-time benefit 6 basis points from int on IT refund, calculated net interest margin were up 12-14 bps QoQ, slightly higher than expected.
Higher opex (up 11% QoQ) was offset by lower credit costs, with profit after tax growth of 19% YoY and return on asset of 2.2% in Q3 FY23.
Asset quality metrics were stable QoQ, with moderation in credit costs (at 74 bps), after factoring utilisation of Rs 2 billion contingent provisions. Loan growth was led by retail and commercial business portfolios (up 4.5%/6% QoQ). Deposits traction at 19% YoY and 4% QoQ remains superior to industry.
We believe HDFC Bank can deliver ~2% return on asset on a sustained basis, even post the merger with Housing and Development Finance Corporation Ltd. Clarity on regulatory dispensations remain awaited.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
