February 09, 2017 / 11:52 IST
Axis Direct's research report on HDFC HDFC’s PAT of Rs 17 bn (+12% YoY) was in line with expectation. Advances grew 16% YoY led by ~18% growth in non-individual loans. Retail loan growth was healthy at 15%YoY given the circumstances prevailing during Q3.NIM improved 10 bps QoQ to 3.95% with a shift in mix towards non-individual portfolio and falling cost of funds. Asset quality was stable (GNPA at 81 bps; up merely 5 bps QoQ).
OutlookHDFC enjoys tailwinds from falling interest costs, GoI push for affordable housing (with likely incentives to be announced in the coming budget). It has delivered healthy loan growth (15% average over the past 3 years) on an increasing base. Recent inorganic acquisitions in life & general insurance businesses would also start paying dividends in medium term.Maintain BUY with TP of Rs 1,540.
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