HDFC Bank Delivers Another Quarter Of Resilience, Consistency: ICICI Securities 
A customer exits an HDFC Bank Ltd. branch in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

HDFC Bank Delivers Another Quarter Of Resilience, Consistency: ICICI Securities 

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 Q3 FY21 performance with consistent 18% YoY earnings growth at Rs 87.6 billion beats ours as well as consensus expectations.

Performance was buoyed by lower credit cost (1.3%), rebound in fee income (up 10% YoY), and sustained net interest income growth (more than 15%).

Management’s resilient narrative was encouraging:

  1. Flat pro forma gross non-performing assets at 1.38%, pro forma slippages at less than 2%, restructuring at 0.5%;

  2. Demand resolution for retail portfolio at 97% (similar to October, 95% in September);

  3. Vulnerable small and medium enterprise stress portfolio further down to 2.3% (from 3% and initial estimate of 9%).

Click on the attachment to read the full report:

ICICI Securities HDFC Bank Q3FY21.pdf

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