HDFC Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 841360.08 Crore).
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 40909.49 Crore, up 2.69 % from last quarter Total Income of Rs 39838.73 Crore and up 6.85 % from last year same quarter Total Income of Rs 38287.17 Crore. The bank reported net profit after tax of Rs 8433.78 Crore in latest quarter.
Investment Rationale
HDFC Bank continues to deliver better growth in advances, led by healthy trends in Commercial and Rural Banking loans. The bank’s operating performance remains broadly in line, though margin has been under pressure owing to continued embargoes. Asset quality has deteriorated marginally due to disruptions in collections on account of the second COVID wave. The bank continues to make additional contingent provisions to further strengthen its Balance Sheet. Total restructured book increased to 0.8% of loans (v/s 0.6% of loans), however overall stress formation remains under control. In the near term, lifting of RBI restrictions remains a key monitorable. The brokerage broadly maintains earnings estimates and project 18% PAT CAGR over FY21-23E.
Promoter/FII Holdings
Promoters held 21.1 per cent stake in the company as of June 30, 2021, while FIIs held 50.7 per cent, DIIs 17.6 per cent and public and others 10.7 per cent.
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