ICICI Direct: HDFC Bank’s Steady Quarter In Tough Environment
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ICICI Direct Report
HDFC Bank first quarter indicated that 9% of customers opted for Moratorium 2.0 (5% in Moratorium 1.0). Provisions continued to stay elevated at approximately 39 basis points of advances to Rs 3,891 crore, including contingent provisions of approximately Rs 1,000 crore. As of June 2020, the bank has outstanding floating provision of Rs 1,451 crore, contingent provisions of Rs 4,002 crore, i.e. ~0.5% of advances.
On the back of Covid-19 led economic slowdown, HDFC Bank reported sequentially moderate credit offtake at 1% QoQ but up 21% YoY to Rs 10,03,291 crore. Retail growth decelerated to 7% YoY to Rs 4,75,005 crore, led by sequential de-growth across retail portfolio, while corporate loan growth was healthy at 37% YoY to Rs 5,28,286 crore
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