HDFC Bank Q1 Review - Second Covid-19 Wave Led Deterioration In Asset Quality: IDBI Capital

A HDFC Bank branch exterior.(Source: BloombergQuint).

HDFC Bank Q1 Review - Second Covid-19 Wave Led Deterioration In Asset Quality: IDBI Capital

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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.

IDBI Capital Report

HDFC Bank Ltd.’s asset quality deteriorated due to second Covid-19 wave as gross non performing asset stood at 1.47% versus 1.36% YoY (1.32% QoQ) while net non performing asset at 0.5% versus 0.3% YoY (0.4% QoQ).

Annualized slippage ratio increased to 2.54% versus 1.2% YoY (1.66% QoQ).

Restructured assets stood at 80 basis points of advances as of Q1 FY22; led by retail portfolio. However, two-third of this constitutes unsecured assets.

Collections were impacted in April and May however picked up in June.

HDFC Bank's advances growth remains stable at 14.4% YoY versus 14.0% YoY in Q4 FY21 led by wholesale loans (10.2% growth) and retail loan growth of 9.3%.

Click on the attachment to read the full report:

IDBI Capital HDFC Bank Q1FY22 Result Update.pdf

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