How do you see the impact of the latest quarterly results on HDFC Bank stock price?
Answer
Answer
As HDFC Bank presented its last quarterly results under the leadership of Aditya Puri, it continued to flatter and surprise the street with its consistent growth story. Sasidharan Jagdishan will take over from Puri on 27 October.
For the Sep-20 quarter, HDFC Bank reported 18.4% jump in standalone net profits to Rs.7513 crore. For the 3 month period, its net interest plus other income grew by 10% to Rs.21,869 crore in the Sep-20 quarter.
The net interest income or NII was 17% higher at Rs.15,776 crore while net interest margins or NIMs stood at 4.1%. HDFC Bank has managed to maintain its NIM above the 4% mark despite the tough market conditions.
Business growth was also robust. Total advances or loans in the quarter were up 15.8% at Rs.10.38 trillion. Overall, there was 27% growth in the wholesale or corporate loan book and 5.3% growth in retail book, so the bias clearly appears to be shifting.
The bank kept a tight leash on gross NPAs at 1.08% and net NPAs at 0.17%. HDFC Bank made provisions of Rs.3703 crore in the quarter. Of course, this is not counting the EMI impact, but the provisions have been made for that too.
It looks like the results should have a positive impact on the stock price of HDFC Bank.