Diwali Dhamaka - HDFC Bank

Buy - HDFCBANK

CMP (NSE) 15:59, 23 May

1,304.00 -16.95-1.28%

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Sector

Banking

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Reco. Price

1,600

Period

12-Months

Target Price

2,000

upside

%

Stop Loss

0

Last updated on

03 Nov, 2021

HDFC Bank is the largest private sector bank in India with a market share of ~10.3% in system loans as of FY21. It has a strong national network of 5,608 branches spread across urban and rural markets, a high-quality deposit franchise, well-diversified revenue mix, strong asset quality, and consistent financial performance.

We see some greenshoots of high yielding retail/SME loan growth improving and asset quality stabilizing , giving room to HDFC Bank to invest in tech and franchise in a highly competitive environment.

NIMs stable QoQ at 4.1% , Fees (incl. forex income) grew 14/29% QoQ/YoY and Opex grew 14/15% QoQ/YoY led by additional ESOP prov. of Rs830mn.

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