BSE Code: | NSE Code: | ISIN: | Sector:
Research Report Detail
|Report Date||Call||Price@Call||Target Price
|Current Status||Time Horizon|
|Target Hit|| Long (1Y)
Reliance Securities maintains buy on HDFC Bank
adverse operating environment, HDFC Bank continued to deliver strong
performance on business growth as well as operating fronts. The Bank has
delivered a healthy performance on business growth and operating front
in 1QFY18. Despite a mere 6.1% YoY growth in banking industry loan, its
loan book grew by 23.4% YoY and 4.8% QoQ,. This outperformance on loan
growth front with a huge margin vs. the industry is really commendable
as it is the second largest bank in India in terms of loan book size.
Its gross NPA and net NPA increased by 23.1% QoQ and 37.1% QoQ, respectively in 1QFY18. However, we are not much concerned over this marginal rise in gross NPA, as the headline NPA and PCR continue to remain best-in-class in the industry.
We have revised our loan growth target to 20-21% from earlier estimate of 17-18% led by relatively higher loan growth over last two quarters.