HDFC Bank is a publicly held banking company, the bank was incorporated in August 1994 in the name of ‘HDFC Bank Limited’, with its registered office in Mumbai, India. It is engaged in providing a range of banking and financial services including retail banking, wholesale banking and treasury operations. It is promoted by HDFC Ltd. which has 19.32% stake as on September 30, 2020. Currently, HDFC Bank Ltd. (HBL) is the largest private sector bank in India.
Quarterly Earnings Results Walkthrough
HDFC Bank Q2 net profit rises 22% to Rs 11,163 crore through strong loan growth.
HDFC Bank is a private sector lender. Their net interest income grew by 19 percent to Rs 21,021. crore from Rs 17,684 crore reported in the year-ago period.
Domestic retail loans have grown by 21 percent while commercial and rural banking loans gave a growth of 31 percent. Corporate and other wholesale loans got an increase of 2 percent.
Asset quality of the bank has enhanced with gross non-performing assets (GNPAs) reported in at 1.23 percent, as against 1.28 percent in the year-ago quarter. Net non-performing assets (NNPAs) were at 0.33 percent of net advances as on September 30, 2022, as against 0.35 percent in Q1FY23.
Total balance sheet size as of September 30, 2022, was at Rs 2,227,893 crore as against Rs 1,844,845 crore as of September 30, 2021 which is a growth of 21 percent.
Total deposits have a very prominent growth and were at Rs 1,673,408 crore as of September 30, 2022, an increase of 19 percent YoY. Current Account Savings Accounts (CASA) deposits grew by 15 percent with savings account deposits at Rs 529,745 crore and current account deposits at Rs 229,951 crore.
Brokerage Firms Resolutions
ICICI Direct is bullish on HDFC Bank, and they have recommended a buy rating on the stock with a target price of Rs 1750 in its research report dated October 16, 2022.
Prabhudas Lilladher is bullish on HDFC Bank, and they have recommended a buy rating on the stock with a target price of Rs 1800 in its research report dated October 16, 2022.
Motilal Oswal is bullish on HDFC Bank, and they have recommended a buy rating on the stock with a target price of Rs 1800 in its research report dated October 16, 2022.
Sharekhan is bullish on HDFC Bank, and they have recommended a buy rating on the stock with a target price of Rs 1800 in its research report dated October 15, 2022.
YES Securities is bullish on HDFC Bank, and they have recommended a buy rating on the stock with a target price of Rs 1830 in its research report dated October 15, 2022.
HDFC Bank has shown a strong support level at the 38.2% retracement level at 1348. The stock is hovering close to the 100-day moving average. MFI stands at 48. We may observe strong growth in the coming months as the Bank can make a triple top at its lifetime high of 1725 which is backed by the impressive quarterly earnings results.
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