HDFC Bank Q4 Review - Resilience And Consistency: ICICI Securities
A customer exits an HDFC Bank Ltd. branch in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

HDFC Bank Q4 Review - Resilience And 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. concluded FY21 – a year of pandemic and business disruption – with 19% earnings growth (almost similar to past 5-year average), 1.32% GNPAs (lower than pre-pandemic levels), 0.6% restructuring, 1.7% slippage run-rate, 1.5% credit cost (including 30 bps contingency buffer), 14% advance growth, and 16% deposit growth.

That’s indeed commendable and what gives us further confidence in the franchise, are:

1) precautionary credit reserve of 60 bps still exists;

2) best-in-class deposit franchise (<4% deposit cost) supporting 4.2% NIMs;

3) beefing-up of resources (123 branches added) to boost retail growth (from 6.7% in FY21); and

4) enhancing technology capabilities to address outage issues.

Click on the attachment to read the full report:

HDFC_Bank_Q4FY21_results - ICICI Securities.pdf

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