HDFC Bank Q1 Review - Pandemic Hits Quarter; Geared To Push Recovery Ahead: ICICI Direct

A customer exits an HDFC Bank Ltd. branch in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

HDFC Bank Q1 Review - Pandemic Hits Quarter; Geared To Push Recovery Ahead: ICICI Direct


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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.

Click on the attachment to read the full report:

ICICI Direct HDFC Bank Q1FY22 Results Update.pdf


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