Motilal Oswal neutral on HDFC Bank

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Motilal Oswal has maintained neutral rating on HDFC Bank with a target of Rs 720, in its January 21, 2013 research report.
 
“HDFC Bank's 3QFY13 PAT grew 30% YoY to INR18.6b (in line with estimates). While NII was 3% below estimate at INR38b (NIM declined 10bp QoQ v/s stable expectation), strong fee income growth (+16% QoQ and 24% YoY) and higher treasury gains of ~INR1.4b led to in-line operating profit and PAT.”
 
“GNPAs increased 14% QoQ - the sequential increase is the highest since 4QFY09. Of the incremental rise in GNPAs, 40% was contributed by CV/CE segment (retail formed 80%). Loan growth was driven by strong growth in retail segment (+6% QoQ and 30% YoY). Growth remained strong in personal loans (+6% QoQ and 28% YoY), business banking (+7% QoQ and 33% YoY), credit cards (+16% QoQ and 55% YoY) and gold loans (+18% QoQ and 82% YoY). SA deposits growth was healthy at +4% QoQ and +17% YoY, despite competitive intensity increasing post deregulation of savings deposit rates. However, led by a decline in CA deposits (down 2% QoQ), core CASA ratio declined 50bp QoQ to 45.4%. During the quarter, bank made provisions of INR3.1b of which INR2.8b was towards NPAs, while INR300m was for floating provisions. Outstanding pool of floating provisions stood at ~INR17.5b (~INR7.4/share).”
 
“HDFCB is best-placed in the current environment with (1) CASA ratio of ~46%, (2) growth outlook of 1.3x the industry, (3) improving operating efficiency, (4) expected traction in income due to strong expansion in branch network and (5) healthy asset quality. Though we remain positive on the bank's business, we believe valuations are rich. Maintain Neutral,” says Motilal Oswal research report.

Read More