HDFC Bank’s earnings growth moderates in Q1 — Is the golden era over?
A marginal blip, but bank well poised to leap forward
July 19, 2021 / 10:38 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
HDFC Bank (CMP Rs 1,541; M Cap: Rs 841,000 crore) has posted a healthy performance in the first quarter of FY22, with net profit rising by 16 per cent year on year (YoY). However, it was marginally lower than the bank’s historic trend of 18-20 per cent earnings growth.
During the reporting quarter, the disruption caused by the second wave of COVID-19 impacted profitability as the bank shored up provisions to deal with future contingency. HDFC Bank’s collection efforts were...