November 07, 2016 / 18:34 IST
Arihant Capital's research report on HDFC Bank HDFC Bank reported steady set of numbers in line with estimates. Interest income increased by 16% YoY to Rs. 17,070 cr, while on QoQ basis it increased by 3%. Interest expenses increased by 12% YoY, while on QoQ basis it increased by 4% to Rs. 9,076 cr. Net interest income increased by 20% on YoY basis and 3% on QoQ basis to Rs. 7,994 cr. Reported net interest margin stood steady on YoY basis at 4.2. Return on Assets stood at 0.5%.
HDFC bank continued to report steady performance. NIM for the year is expected to be in range of 4% - 4.3%. Capital Adequacy for the bank stood at 15.4% with Tier- 1 CAR at 13.3%. We have valued stock on P/ABV(x) of 3.6(x) to its FY18E adjusted book value of Rs 384 per share and arrived at a fair value of Rs. 1,365. We have ‘HOLD’ rating on the stock.
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