CLSA retains 'Buy' on HDFC Bank, sees 21% CAGR in profit over FY17-20

The house has raised HDFC Bank's estimates by over 1 percent for FY19-20 and see 21 percent CAGR in profit over FY17-20 adding that planned capital raise will lift Tier-I capital adequacy ratio (CAR) by + 300 bps to 17 percent.

Sandip Das

March 01, 2018 / 12:06 IST

HDFC Bank (Image: PTI)

Research firm has retained a buy call on HDFC Bank with target at Rs 2,340 per share. The house believes that the bank is moving into a sweet spot to accelerate growth adding that its late-entry advantage in the infra space allows it to cherry-pick assets.

CLSA sees upside in the stock to earnings estimates on the back of stronger topline.

The house has raised HDFC Bank's estimates by over 1 percent for FY19-20 and see 21 percent CAGR in profit over FY17-20 adding that planned capital raise will lift Tier-I capital adequacy ratio (CAR) by + 300 bps to 17 percent.

In relation of Watsapp data leak, HDFC Bank said it is committed to the highest standards of corporate governance, days after the lender was asked by SEBI to strengthen its systems to prevent leakage of confidential financial data.

"The bank has and will continue to work closely with SEBI in this regard. The bank reiterates its commitment to the highest standards of corporate governance and the integrity of its systems, controls and processes, including with regard to prevention of unauthorised access to UPSI," it said.