Buy HDFC Bank target of Rs 1400: Sharekhan

Sharekhan's research report on HDFC Bank

HDFC Bank reported Q1FY21 results, with Operational performance largely in line with expectations; PAT was boosted by higher treasury income even though Core fee income declined. Though asset quality deteriorated slightly as GNPA rose sequentially, a confident management stated that moratorium pie has fallen to ~9% of the total book, which is positive. Balance sheet stays robust, with provision buffer (total provisions at 149% of GNPAs). The succession of Mr. Puri, the MD & CEO, will be keenly watched, but the bank has hinted the successor is likely to be an internal candidate.

Outlook

The bank clarified well on most other uncertainties (recent events, management exits). We retain our Buy rating on the stock with unchanged price target (PT) of Rs. 1,400.

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