BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
HDFC Bank Ltd.’s Q2 FY22 net interest income growth retraced to 12.1% YoY (8.6% in Q1 FY22), slippages moderated to 1.8% (2.54% in Q1 FY22) and credit cost was contained at 1.3% (1.7% in Q1 FY22).
This, coupled with 25% YoY growth in core fee income, supported 18% earnings growth.
Gross non performing asset for the bank came off by 12 basis points QoQ to 1.35% and stage-III assets for HDB Financial Services improved 200 bps to 6.1%.
What surprised negatively:
exposure of Rs 174 billion being restructured under one time restructuring 2.0.
higher than expected QoQ rise of 14% in operating expenses leading to marginally below expected profit after tax.
What gives confidence:
demand resolution is back to pre-Covid-19 levels; recoveries are encouraging.
bank is embarking on project Future Ready and building digital and franchise capabilities to capture growth opportunities.
cumulative provisioning is equivalent to 2.2% of advances against 2.9% of stress pool.
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