HDFC Bank Q1 Results Review - Unmerged Bank Growing Relatively Slower, Merged Entity More So: Yes Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Housing Development Finance Corporation Ltd.’s entire loan book taken together with unmerged HDFC Bank Ltd., including the impact of inter-bank participation certificates, have delivered a growth of 13% YoY: Net of IBPC, loan growth for the unmerged bank was 15.7% YoY (0.9% QoQ) whereas, gross of IBPC, the loan growth was 20% YoY. For HDFC, Individual loans have grown 14% YoY but non-individual loans have de-grown 18% YoY since the management is re-assessing these loans before they decide to grow this business again. Cost of funds has moved up ~30 basis points QoQ to 4.0%, which has outpaced the ~20 bps rise in yield on assets to 8.1%: Apart from deposit book re-pricing, another key reason for the rise in cost of funds in the change in the composition of deposit book. While term deposits have grown 5.0% QoQ, savings account deposits have de-grown -0.3% QoQ and current account deposits -7.7% QoQ. Management explained that HDFC Bank’s term deposits are not priced aggressively but rather at or just below competitor pricing. We maintain a less-than-bullish 'Add' rating with an unchanged price target of Rs 1950: We value the standalone bank at 2.5 times FY25 price/book value for an FY24E/25E/26E return on equity profile of 15.6/16.1/16.5%..Click on the attachment to read the full report:.HDFC Bank Q1 Results Review - Higher Opex To Offset Healthy Asset Quality: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Bank Q1 Results Review - Unmerged Bank Growing Relatively Slower, Merged Entity More So: Yes Securities

Cost of funds has moved up ~30 basis points QoQ to 4.0%, which has outpaced the ~20 bps rise in yield on assets to 8.1%.

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HDFC Bank Q1 Results Review - Unmerged Bank Growing Relatively Slower, Merged Entity More So: Yes Securities

Cost of funds has moved up ~30 basis points QoQ to 4.0%, which has outpaced the ~20 bps rise in yield on assets to 8.1%.

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