Please refer to important disclosures at the end of this report
HDFC Bank (HDFCBK) Limited offers a range of banking services covering
commercial and investment banking on the wholesale side and
transactional/branch banking on the retail side. HDFCBK continues to
outperform the sector on loan growth and asset quality by a wide margin.
HDFCBK has continued to grow on a larger base consistently and it is expected
that the trends will continue further. With its sustained network expansion drive,
HDFCBK will gain further market share and consistently deliver robust growth
even on a large base. According to the management, in Q3FY17 $2bn worth
FCNR deposits and loans will get matured, which is 2% of the loan book.
Management has given NIM guidance for 44.3% for FY17. It is also expected
that the earning momentum will continue followed by stable RoA of 2%. HDFCB
is well positioned in the current environment with 40% CASA ratio and
smallest amount of asset quality risk. With CET1 of 13.3 %, strong capacit
building amid moderate growth cycle and significant digitalization initiatives,
the bank is well placed to benefit from the expected pick-up in economic growth
cycle. The company has good consistent profit growth of 25.64% CAGR over the
last 5 years. Hence Buy.
CMP `1,277
Stock Info
Beta 0.7
Bloomberg Code
Shareholding Pattern (%)
Promoters 21.3
MF / Banks / Indian Fls 18.4
FII / NRIs / OCBs 50.9
Indian Public / Others 9.3
Abs. (%) 3m 1yr 3yr
Sensex (4.7) 4.7 29.8
HDFC Bank 4.3 20.9 96.1
Market Cap (
cr) 3,24,236
52 Week High / Low 1318/929
Avg. Daily Volume 1,09,612
Face Value (
BSE Sensex 26,819
Nifty 8,296
Reuters Code HDBK.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Others | Banking
November 15, 2016
HDFC Bank | Banking
November 15, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Disclosure of Interest Statement HDFC Bank
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)