HDFC - Contained Credit Cost With Strong Core Buoys Q3 Earnings: ICICI Securities
Signage for Housing Development Finance Corp. (HDFC) is displayed outside the company's offices in Mumbai, India. (Photographer: Vivek Prakash/Bloomberg)

HDFC - Contained Credit Cost With Strong Core Buoys Q3 Earnings: 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

Housing Development Finance Corporation Ltd.’s Q3 FY21 earnings were characterised by -

1. strong core - net interest income growth settling upwards of 25% with net interest margins further expanding 30 basis points to 3.7%;

2. meaningful uptick in individual loan disbursements (26% YoY) suggesting market share gain;

3. collection efficiency nearing pre-Covid-19 level for retail loans (97.6% from 96.3% in September), though lags for non-individual segment (sub-80%); and

4. rise in stage-two pool to 7.1% that will keep bucket-wise movement volatile - though has conservatively included restructuring and Emergency Credit Line Guarantee Scheme pool.

Click on the attachment to read the full report:

ICICI Securities HDFC Q3FY21 Results Update.pdf

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