HDFC Bank Back To Normalisation In Q3, Says Prabhudas Lilladher
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Prabhudas Lilladher Report
HDFC Bank Ltd.’s earnings were in-line at Rs 87.6 billion (our estimate Rs 87.5 billion) with net interest income slightly growing slow at 15%, though net interest margin improved by 10 basis points to 4.2%.
Better treasury gains helped pre-provision operating profit and made additional Rs 26 billion of contingent provisions.
Contingency plus floating provisions now stood at 100 basis points of loans (70 basis points in Q2 FY21) which is quite adequate given normalisation in slippage and lower restructured book of 50 basis points of loans (Rs 54 billion).
Collections also have normalised to pre-Covid-19 levels of 97% but yet varies product to product making growth aspects slightly cautious.
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