HDFC Bank Ltd., incorporated in the year 1994, is a banking company (with a market cap of Rs 822339.29 Crore).
HDFC Bank Ltd. key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2020.
Investment Rationale
Growth to be driven by digital investments: The management commentary suggests, the bank remains confident of maintaining credit growth at a similar pace on the back of market share gains across different lending segments, with partnerships with fin-tech players. “Digital” is now the buzzword at HDFC Bank. Every service that it offers can be done digitally. The physical form of banking remains, but ~85 per cent of financial transactions initiated by customers are digital. In contrast, the figure is just 8 per cent for banking at branches and 6 per cent for banking through ATMs. The change is evident. The numbers were 40 per cent for digital, 30 per cent for ATMs and 18 per cent for physical form of banking in 2012.
Factoring economic recovery, digital adaption and technological enhancement, the brokerage believes, HDFC Bank’s credit to grow at a CAGR of 21 per cent in FY21-24 (10-12 per cent above market growth).
Financials
For the quarter ended 30-09-2021, the company has reported a Consolidated Total Income of Rs 41436.36 Crore, up 6.43 per cent from last quarter Total Income of Rs 38933.63 Crore and up 7.80 per cent from last year same quarter Total Income of Rs 38438.47 Crore. The bank has reported net profit after tax of Rs 9096.19 Crore in latest quarter.
Promoter/FII Holdings
Promoters held 25.83 per cent stake in the company as of 30-Sep-2021, while FIIs owned 42.96 per cent, DIIs 17.81 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
