HDFC Bank Q3 Results Review - Slight Moderation In Loan Growth Likely: Prabhudas Lilladher

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.HDFC Bank Ltd. saw stable quarter; net interest margin (in-line) improved by 7 basis points QoQ to 3.73% as excess liquidity was utilised to retire wholesale deposits, thereby increasing loan-to-deposit ratio by ~3% QoQ. Loan growth at 4.9% QoQ was led by CRB, housing and constant currency. With system liquidity in shortfall and peak LDR at 77.4%, deposit growth should be faster for current loan momentum to sustain, failing which system loan accretion should reduce in FY25/26E, compressing LDRs. Factoring a 15% compound annual growth rate for HDFC Bank, we trim loan growth by 1% in FY25/26E which would impact NIM by 4/5 bps. This could be partly offset by lower opex given softer deposit requirement; our core profit after tax reduces by 2%/4%. While falling LDR could pressurize NIM, bank would focus on-controlling deposit cost andimproving share of current account and savings account and higher yielding retail. Maintaining multiple at 2.7 times, we revise target price to Rs 2,000 from Rs 2,025. Retain ‘Buy’..Click on the attachment to read the full report:.HDFC Bank Q3 Results Review - Margins Flat, Lower Tax Rate, Treasury Gains Boost Earnings: Systematix.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Bank Q3 Results Review - Slight Moderation In Loan Growth Likely: Prabhudas Lilladher

Net interest margin mainly in-line though due lower liquidity and increase in loan-to-deposit ratio.

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HDFC Bank Q3 Results Review - Slight Moderation In Loan Growth Likely: Prabhudas Lilladher

Net interest margin mainly in-line though due lower liquidity and increase in loan-to-deposit ratio.

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