HDFC Bank Ltd - 500180 - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate
Notice for loss/misplacement of share certificates is attached28-07-2021
28-07-2021
HDFC Bank Ltd - 500180 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Pursuant to the applicable provisions of the Regulations, please find attached the schedule of analysts / institutional investor meets held on July 27, 2021.27-07-2021
ICICI, Axis and HDFC Bank pick up stake in blockchain start-up
Acquire 50,000 equity shares amounting to 5.55% stake in IBBIC27-07-2021
After a lukewarm H1CY21, private banks on cusp of re-rating, say analysts; ICICI, HDFC Bank, Kotak among top picks
The second wave of the coronavirus is the main reason why most banking stocks failed to carry forward the healthy Q4FY21 numbers. With economic activity picking in June, business growth is expected to improve from the second half of FY22, say experts27-07-2021
Pandemic proof HDFC Bank is now feeling the pain
India’s strongest private sector bank, HDFC Bank is down 5%, after its June 2021 quarter results came in last week on July 17. The results were unimpressive and below street expectations. Investors’ faith in HDFC Bank was tested as it witnessed asset quality concerns, with higher slippages and restructured loans. Slower growth in net interest income, deposits, advances and continuation of the RBI ban on new credit card issuance dented investor sentiment. Even though management commentary was optimistic regarding any kind of Covid-19 contingency, HDFC Bank with its modest Q1FY22 results may have set the tone for the rest of the banking sector for the June 2021 results season. Quick Takes: Impacted by Covid-19 second wave, HDFC Bank reported lowest ever net interest income (NII) YoY growth at 8.6% in Q1FY22 Sequential NII growth was lower because of lower yielding asset mix, higher interest reversals and lower revolving credit card balances The management sees strong pick up and expansion in capital expenditure (capex) in steel, textiles, chemicals, consumer durables, paper & packaging, tractors and food processing sectors Lower credit card business and advances, and the shift towards low margin wholesale book driven by public sector undertaking (PSU) entities impacted net interest margin (NIM) The bank has 14.9 million cards and spend per active card for HDFC Bank is 1.4 times higher than the industry Street not enthused with Q1FY22 results HDFC Bank was the first bank to announce Q1FY22 results after IT services companies got the earnings season underway. Investors were hoping India’s highest valued bank’s June 2021 quarter results would help them gauge the impact of the second wave of the pandemic. The bank reported slower net profit and net interest income (NII) growth on a YoY basis, along with sequential deceleration. Asset quality weakened due to higher provisions for NPAs in Q1FY22. NII (interest earned less interest expended) was reported at Rs 17,000 crore compared to Rs 15,665 crore, a rise of 8.6% YoY. NII was flat on a sequential basis. NIMs at 4.1% were down 20 basis points (bps) YoY and 10 bps sequentially in Q1FY22. Provisions were higher at Rs 4,830 crore (up 24% YoY in Q1FY22), which includes Rs 600 crore contingent provisions. Impacted by lower revenues and higher provisions, net profit growth slowed to 16% YoY. Net Profit came in at Rs 7,730 crore, and fell 5.5% sequentially. HDFC Bank’s impeccable asset quality took a hit in Q1FY22 after being broadly stable in the March 2021 quarter. Gross NPA ratio (percentage of gross NPAs to gross advances) and Net NPAs (percentage of net NPAs to net advances) came in at 1.32% and 0.40% in Q4FY21 were better than Q3FY21 pro forma numbers. But with lower collections due to lockdowns and higher slippages, GNPAs and Net NPAs increased marginally, 11 bps and 15 bps YoY respectively in the June 2021 quarter. CASA (current accounts and savings accounts) ratio at 45.5% was a bright spot, a rise of 550 bps YoY. Total deposits increased to Rs 1,345,829 crore, a 13% YoY jump while advances at Rs 1,147,652 crore, reported an increase of 14.4% over June 30, 2020. Curtailed banking operations dampen growth spirits HDFC Bank entered FY22 on a cautiously optimistic note. The rapid rise of Covid-19 infections and localized lockdowns, led to slower loan growth in April-May 2021. While economic activity improved from June onwards as many states unlocked, banking operations were curtailed for two-thirds of the quarter. The Covid-19 second wave disruption led to lower retail loan originations, decrease in sale of third-party products, lower card spends and reduced efficiency in collection efforts. Jimmy Tata, Chief Risk Officer at HDFC Bank, said that with the rapid rise of infections among the bank staff, recovery calls and other operations were curtailed in the first two months of Q1FY22. This led to its lowest ever YoY growth in NII for India’s largest private bank. Fresh accretion of NPAs and slipages increased to Rs 7,300 crore in Q1FY22. Slippage ratio surged to 2.54% of loans in the June 2021 quarter compared to 1.2%, a year ago. With curtailed banking operations during the quarter and lower sale of third party products, fee income also declined 23% QoQ. While deposits growth rate was also down sequentially by three percentage points, the loan book improved marginally compared to the March 2021 quarter. Wholesale loan growth moderates, retail loans gather pace The growth in HDFC Bank’s loan book started decelerating from the June 2020 quarter on a YoY basis. Till then, the quarterly YoY growth rate moved in the 20% and above range. To navigate the slowdown, the bank had reinforced its credit standards and improved its underwriting machinery prior to Covid-19 pandemic. The bank entered the pandemic with a new book, carrying lower delinquencies. HDFC Bank’s loan book is segregated into three main segments, retail, commercial & rural banking (CRB) and other wholesale banking. The wholesale loan book which grew above 20% every quarter in FY21, reported 18.2% YoY growth in Q1FY22. Significant constituent of wholesale book is commercial & rural banking (CRB), which grew 25% YoY. Retail loan book growth was muted in the last financial year, but grew at 9.3% YoY. Tata said that the wholesale loan book quality remains strong with 80% of the total loan book in the AAA or AA portfolio. He further added that the bank does not change policy or credit judgement, and measures wholesale or its corporate loan book rigorously against its internal rating scale (1-10, 1 is the safest). The wholesale book internal rating stands within the range of 4.3-4.4. The unsecured corporate portfolio is rated at an even higher scale of 3.5. With respect to the retail loan portfolio, credit demand was restored to 80% of March 2021 quarter levels. According to the management, the bank has gained substantial market share in the two-wheeler and car loan segment. The bank intends to work aggressively in scaling up its auto topline in the next few quarters. High vehicle registrations in June 2021 of passenger vehicles (40% YoY growth), two wheelers (17% YoY) and commercial vehicles (3X YoY), indicates high pent-up demand and augurs well for HDFC Bank. Auto loans constitute 23% of its total retail loan book (Rs 5,23,489 crore). Commercial equipment segment is also expected to receive impetus from high government focus on roads, mining and infrastructure. HDFC Bank has a market leadership position in the personal loan segment (23% of retail mix) and aims to capitalize its low delinquency portfolio with increased contributions from high income customers. Nearly 80% of its personal loan portfolio consists of loans to salaried customers and the remaining 20% are self-employed. In addition to that, nearly 70% of salaried customers are employed with reputed AAA/AA companies/MNCs/government corporations. With respect to mortgages, Tata said that the bank is originating loans and growing at a higher pace than the previous year amid Covid-19 disruption. And lastly in the CRB segment, revenues rose 25% YoY and 4% sequentially. Growth was both from existing and new clients. The management intends to extend its footprint in 100 new cities by the end of FY22. In rural banking, while collections were impacted in the early part of the quarter, they are currently back to normal. The management has a strong growth outlook for CRB in the coming quarters. Optimistic future growth outlook but credit cards issue unresolved The bank sees strong pick up and expansion in capex in steel, textiles, chemicals, consumer durables, paper & packaging, tractors and food processing sectors. Tata said, “HDFC Bank is echoing projections of almost 100% pre-Covid levels on disbursements”. With this backdrop, the bank expects loan growth rates to scale up rapidly in the quarters ended September 2021 and December 2021. Before the Covid-19 second wave, the bank hoped to achieve growth levels similar to 2019 ( growth rate above 20% in net profit and advances). The bank is on course to achieve this original financial year plan and report solid growth by the end of FY22, said Tata. HDFC Bank with its strong liability franchise, cost control and benchmark asset quality, has handled the Covid-19 first wave well. Though investors are disappointed with June 2021 quarter results, analysts have retained their buy calls for the private sector behemoth. While getting back to growth is definitely on the management’s agenda, the bank’s inability to scale up its card business due to RBI’s ban on issuance of new credit cards remains a dampener.27-07-2021
HDFC Bank Ltd - 500180 - Supplemental Disclosure Under Regulation 30 Of The SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 ('SEBI Listing Regulations')
Further to the disclosure dated November 20, 2020 made by the Bank under the SEBI Listing Regulations, we wish to inform that the Bank has subscribed to 50,000 Equity Shares of the face value of Rs. 10/- each fully paid up of IBBIC Private Limited ('IBBIC') for a consideration of Rs. 10 per equity share constituting 5.55% of the issued and paid up capital of IBBIC. Pursuant to Regulation 30 of the SEBI Listing Regulations, we wish to provide the following disclosures with respect to the above is attached:27-07-2021
HDFC Bank Ltd - 500180 - Announcement under Regulation 30 (LODR)-Allotment of ESOP / ESPS
We wish to inform you that the Bank has allotted today 5400286 equity shares to the employees of the Bank pursuant to exercise of options under its Employees Stock Options Scheme (ESOS). The Paid up Share Capital of the Bank will accordingly increase from Rs. 5526719098 equity shares of Re.1/- each to Rs. 5532119384 equity shares of Re.1/- each. Kindly take the same on your record.26-07-2021
HDFC Bank's Puri highest paid banker in FY21, ICICI Bank's Bakhshi forgoes salary in COVID year
Data available for 'crorepati' bankers, or those earning above Rs 8.5 lakh a month, revealed that HDFC Bank had 200 executives in this exclusive club25-07-2021
Buy HDFC Bank target of Rs 1870: Prabhudas Lilladher
Prabhudas Lilladher is bullish on HDFC Bank has recommended buy rating on the stock with a target price of Rs 1870 in its research report dated July 19, 2021.22-07-2021
Buy HDFC Bank; target of Rs 1720: KR Choksey
KR Choksey is bullish on HDFC Bank has recommended buy rating on the stock with a target price of Rs 1720 in its research report dated Jun 19, 2021.21-07-2021