HDFC Q2 Review- Growth Gaining Traction; Results Beat On Lower Credit Cost, Stable Core: 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 Q2 FY22 credit cost was capped at less than 40 basis points, beating our earnings expectations.
Stress pool moderated a tad with stage-III assets coming off 10 bps QoQ to 2.5% and stage-II moderated to 6.2% (versus 6.6%).
Individual segment stage-III assets contracted 30 bps QoQ to 1.3%, and for non-individual segment stage-III increased by 40 bps to 6.2%.
On stress pool (stage-II/III) of 23.2%/3.9% in non-individual/ individual segments, HDFC is carrying provisions of 7.83%/0.82%.
Individual loan growth momentum gained traction to 16% YoY (up 4% QoQ) suggesting improving market positioning.
Non-individual assets under management growth is still under pressure, but pipeline suggests build-up going forward.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.