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