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ICICI Direct Report
HDFC Bank Ltd.’s performance was below expectations considering the tough environment. Key takeaways of result and conference call:
Marred by lockdown, loan growth sequentially saw moderation at 1.3% QoQ and 14.4% YoY. Growth was primarily driven by wholesale loans (up 18.1% YoY) while retail loans showed uptick of 10.2% YoY.
Net interest margin was negatively impacted due to lower yield product mix, lower revolver share in credit cards, interest reversals due to non performing asset.
Net interest income, margin growth would have been higher by 6% YoY, if NIM was not negatively impacted.
Provisions stayed elevated at Rs 4830 crore, including Rs 600 crore as contingent provisions. This led to moderation in earnings at 16.1% YoY to Rs 7729 crore.
No restructuring was done in HDFC Bank's financial during the quarter.
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