Day Trading Guide for April 21, 2020
946 HDFC Bank S1S2R1R2COMMENT 930915960975 Initiate fresh long positions with a tight stop-loss if the stock rebounds up from 930 levels 65221-04-2020
21-04-2020
HDFC Bank Gains More Than 3% On Jump In Q4 Net Profit
HDFC Bank Shares: HDFC Bank on Saturday reported a rise of nearly 18 per cent in Q4 net profit and shortlisted three names to succeed Aditya Puri.20-04-2020
HDFC Bank Q4: Steady performance, but early signs of Covid-led disruption evident
It recorded 450-crore impact on other income due to the crisis19-04-2020
Earnings Call Transcript - Q4FY20 for HDFC Bank
Earnings Call Transcript of the Conference Call between HDFC Bank Management and Analysts on Q4FY20 Earnings. Listen in to the full transcript here. Key Highlights In Q4FY20, we are positioned to gain strong market share. Liquidity is strong, LPR ratio is 132%. Incremental credit to deposit ratio is 78% on average. Capital adequacy ratio is at 18.5%, significantly more than the regulatory minimum of 11.08%. Our CET1 (measure of bank solvency) at 16.4%, is high compared to the regulatory minimum of 7.58%. We have sufficient provisions totalling to Rs. 4,447 crore built over time. We have tightened credits, so there are more rejects of applications. Provision coverage ratio across the board stands at 142%. The net interest margin has been stable historically in the range of 4.1%-4.5% and is currently at 4.3%. Impact in latter half of March in loan origination, collections, and so on. Waiving of certain fees has also been implemented as per RBI mandate. There was good demand from customers prior to lockdown. Net revenues grew by 18.2% driven by an advances growth of 21.3%, deposits growth of 24.3% and other income growth of 23.8%. Net interest income for the quarter was Rs. 15,204 crore, up 16.2% YoY and grew 7.3% over previous quarter. Net interest margin was in the historical range, for the quarter the margin was 4.3%. For context prior year was 4.4%, prior quarter 4.2% We build on deposits to ensure liquidity surplus. The excess liquidity position impacts current NIM by about 10 basis points. Other income - fees and commission (70% of other income) grew by 14.6% over previous year to reach Rs. 4,201 crore. Of this retail constitutes 93% and wholesale 7%. The lockdown has impacted various aspects of fees and commission by around Rs. 350 crore. Our card spends saw March average lower than January and February by around 21%. The second half of March was particularly impacted where the average spend was 35% lower compared to January and February. Fx and derivatives income grew by 24% over previous year to reach Rs. 501 crore. The growth was granular, primarily by retail customers constituting two thirds of total. Trading income was Rs. 565 crore for the quarter. Other misc income Rs. 766 crore includes recoveries and dividends from subsidiaries. Operating expenses for the quarter was Rs. 8278 crore, and increase of 16.3% YoY. Added 313 banking outlets over the year. Staff count increased by 2919 during the quarter. Cost to income was 39% and has remained in the stable range. PPOP: Pre provision of operating profit grew to 19.5% to Rs. 12,959 crore. Adjusted for the covid impact, that would have been at 22%. Asset quality: Asset classification remains at standstill during the moratorium period for customers granted moratorium. GNPA, NNPA and Annualized Core Slippage Ratio has been lowered by 10 bps, 6 bps and 40 bps respectively. GNPA ratio was 1.26% of gross advances as compared to 1.42% in the prior quarter and 1.36% last year. GNPA excluding agriculture NPAs was 1.1%, NNPA was at 0.36% of net advances compared to 0.48% in the previous quarter and 0.39% in the previous year. Annualized Core Slippage Ratio was 1.2%, compared to 1.7% in previous quarter and 1.4% in previous year. Provisions: Total provisions was Rs. 3,784 crore, compared to Rs. 3,044 crore in previous quarter. Coverage ratio at 72% compared to 67% in prior quarter and 72% in prior year. Including contingent provisions related to covid, the coverage ratio is at 96%. Contingent provisions at the beginning of the quarter was Rs. 1,457 crore. At the end of the quarter it is at Rs. 2,996 crore. Floating provisions at Rs. 1451 crore and general provisions at Rs. 4438 crore. At March end all total provisions was 142% of gross non performing loans. Banking is an essential service and has been exempted from the lockdown. By and large branches remain open for customers - 95% of bank branches are operational with limited activities, as are 93% of ATMs. Deployed mobile atms in select cities. We have encouraged online banking so that people transact from home. 200,000 customer engagements on a daily basis. On the wholesale front we are 100% work from home. Handling all processes digitally. 35,000 customers have been called and feedback taken on Covid impact and their welfare.18-04-2020
HDFC Bank Ltd - 500180 - Announcement under Regulation 30 (LODR)-Change in Directorate
We refer to our earlier intimation dated April 8, 2020 regarding the RBI communication advising the Bank to examine and submit the proposal for appointment of Mr. Sashidhar Jagdishan and Mr. Bhavesh Zaveri as Executive (Whole-Time) Directors of the Bank after a new MD and CEO assumes charge later this year. In accordance with RBI's instructions, the Board of Directors of the Bank shall examine and consider their appointments once the new MD and CEO assumes charge. Mr. Sashidhar Jagdishan and Mr. Bhavesh Zaveri have today tendered their resignations as Additional Directors on the Board of the Bank under Companies Act, 2013 and the Board has accepted the same at its meeting held today. This is for your information and appropriate dissemination.18-04-2020
HDFC Bank Q4: Good show, but the COVID-19 shock is likely to weigh heavily beginning June quarter
With economic activity coming to a grinding halt and cash flows of companies getting impacted, analysts expect a rise in bad loans across the sectors. This could take a toll on HDFC Bank's earnings too in the beginning first quarter.18-04-2020
HDFC Bank Ltd - 500180 - Intimation Under Regulation 30 Of SEBI (Listing Obligations And Disclosure Requirements) Regulation, 2015 ('The Regulations')
We wish to inform that pursuant to the recommendations of the Search Committee which was constituted by the Board of Directors of HDFC Bank Limited ('Bank') and the Nomination and Remuneration Committee of the Bank, and pursuant to the Banking Regulation Act 1949 and the extant Reserve Bank of India (RBI) norms, the Board of Directors of the Bank has today finalized the names of three candidates, in the order of preference, for the position of the Managing Director & Chief Executive Officer (MD & CEO) of the Bank. As per the extant RBI norms, the Bank will be submitting its application to RBI with the names of the candidates in the order of preference, seeking approval for the appointment of the new MD & CEO, who shall succeed Mr. Aditya Puri whose term is due to expire on October 26, 2020. On receipt of RBI approval, the Bank shall duly make the requisite disclosures pursuant the Regulations. This is for your information and appropriate dissemination.18-04-2020
HDFC Bank Ltd - 500180 - Outcome Of Board Meeting Held On April 18, 2020
Pursuant to Regulation 33 and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('the Regulations') we send herewith the Audited Financial Results for the last quarter and year ended March 31, 2020 along with the Audited consolidated accounts for the year ended March 31, 2020, duly approved by the Board of Directors at its meeting held today. The press release and the Unmodified Opinion of Statutory Auditors of the Bank in this regard is also enclosed. The Reserve Bank of India, vide its circular dated April 17, 2020, has decided that banks shall not make any further dividend payouts from profits pertaining to the financial year ended March 31, 2020 until further instructions, with a view that banks must conserve capital in an environment of heightened uncertainty caused by COVID-19. Accordingly, the Board of Directors of the Bank, at their meeting held today, has not proposed any final dividend for the year ended March 31, 202018-04-2020
S&P; Global cut Axis, ICICI rating outlook to negative
S&P Global cut Axis, ICICI rating outlook to negativeThe agency believes lenders such as HDFC Bank and Kotak Bank have stronger asset quality.17-04-2020