Religare's research report on HDFC BankHDFCB delivered yet another strong quarter with reported Q3 PAT up 20% YoY to Rs 33.6bn and NII 24% YoY higher, in line with RCMLe. Loan growth was strong at 26% YoY helped by a 30% growth in retail loans. Asset quality deteriorated slightly as GNPAs increased by 11% QoQ, but no new pain emanated from RBI’s asset quality review. NIMs improved by 10bps QoQ and remained healthy at 4.3%. Lower risk weights led to a one-off 30-40bps increase in the tier ratio to 13.2%. Maintain BUY; Sep’16 TP Rs 1,325.We expect HDFCB’s loan growth to remain well above industry levels in FY16/FY17. Maintain BUY with a Sep’16 TP of Rs 1,325. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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