HDFC - Best Bet In A Steady Growth Sector: Nirmal Bang
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Nirmal Bang Report
As we look back over the last several quarters, especially through the pandemic period, Housing Development Finance Corporation Ltd. has emerged as the strongest player among the large housing finance companies, with leading asset quality performance - an area where most large peers have struggled.
However, as we speak, recoveries and collections are improving.
Retail non performing assets are expected to reach less than 1% in the near term, although non-individual NPAs may take some time to recover.
We understand that non-individual NPAs peaked out in Q1 FY22. Credit costs would be brought down to 25-35 basis points.
Besides being sanguine about the retail growth prospects, we expect HDFC to see better growth traction in the non-individual segment than the trend seen in the recent past.
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