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Last Updated : Jan 24, 2017 04:50 PM IST | Source: CNBC-TV18

HDFC Bank growth to be led by volume; Q3 show stable: Experts

HDFC Bank profit in third quarter grew by 15 percent to Rs 3,865.3 crore compared with Rs 3,356.84 crore in year-ago period. Net interest income increased 17.5 percent year-on-year to Rs 8,309 crore in the quarter gone by.


Decoding HDFC Bank's third quarter numbers, Ravikant Bhat, IDBI Capital and Sanjiv Bhasin, IIFL said the numbers are stable and broadly in line with estimates.

HDFC Bank's deposit growth during the quarter ended December 2016 was higher at 21.1 percent with savings and current account deposits increasing to Rs 2.86 lakh crore. Time deposits have grown by 10.3 percent to Rs 3.6 lakh crore. However, the loan growth (domestic) stood at 17.5 percent. Meanwhile, quarter-on-quarter loan growth stood at 0.1 percent.


With the deposit growth being far higher than loan growth, one could see pressure on margins for the bank but the loan growth would come back in quarters ahead, say experts. Bhasin believes growth could be more volume lead.

HDFC Bank'd profit in the third quarter grew by 15 percent to Rs 3,865.3 crore compared with Rs 3,356.84 crore in year-ago period. Net interest income increased 17.5 percent year-on-year to Rs 8,309 crore in the quarter gone by.


Bhat says the stock would remain a top pick. The bank will come back with stronger growth in FY18 but Bhasin says they would change their growth assumptions and valuations. He believes there is more money to be made in likes of SBI, Bank of Baroda, Federal Bank and private side ICICI Bank.

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First Published on Jan 24, 2017 02:36 pm
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