Theleme Master Fund picks up Rs 280 cr HDFC Bank shares
Morgan Stanley Asia Singapore - ODI offloaded 31,07,852 shares at an average price of Rs 901.30-03-2020
30-03-2020
Enormous liquidity rather than rate cuts needed
Enormous liquidity rather than rate cuts needed Head, financial services research, Macquarie not worried about succession issue at HDFC Bank26-03-2020
Day Trading Guide for March 25, 2020
765 HDFC Bank S1S2R1R2COMMENT 754740780800 Fresh long positions are recommended with a tight stop-loss only if the stock moves beyond 780 level24-03-2020
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 March 23, 2020 at Mumbai.24-03-2020
HDFC Bank to name chief executive Aditya Puri's successor before April
Puri in an interaction with reporters said: " the recommendations are with the search committee and before April, an appropriate person who will take the bank into the future will be announced"24-03-2020
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 March 20, 2020 at Mumbai.23-03-2020
HDFC Bank Ltd - 500180 - Granting Of Options Under Employee Stock Option Scheme- ESOS- 34 I
In terms of the applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Nomination and Remuneration Committee of the Bank has today granted 10,20,400 equity stock options of the face value of Rs. 1/- ('options') each at the grant price of Rs. 882.85/- (Rupees Eight Hundred Eighty Two and Paise Eighty Five Only) The options were granted under the Scheme titled 'ESOS 34' in terms of SEBI (Share Based Employee Benefits) Regulations, 2014. We request you to kindly take note of the same. The necessary Intimation in this regard is attached herewith21-03-2020
Downgrade by global advisory firm Bernstein sinks HDFC Bank scrip
Gives a price target of 750 with underperformer' rating20-03-2020
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 March 19, 2020 at Mumbai.20-03-2020
HDFC Bank's reputation for stability is about to be tested
by Suhani Adilabadkar The beginnings of HDFC Bank coincide with a key moment in Indian history, when the banking sector was allowed to have private players. It opened its first branch in February 1995 and was among the first to receive approval from RBI to set up a private sector bank in 1994. Over the past two and a half decades, the bank has transformed from a wholesale entity into one with a significant retail banking growth engine. With a market capitalization of Rs. 56,00,00 crore, HDFC Bank is the most valuable lender with highest market share in private sector banking. Functioning through its retail, wholesale and treasury businesses, the bank has a distribution network of 5,345 banking outlets, 14,533 ATMs across 2,787 cities and towns as on December 31, 2019. 53% of its total branches are in semi-urban and rural areas with a customer base of 49 million. The stock has doubled investor wealth over the past five years. Quick Takes: Net profit grew 33% YoY at Rs. 7,416 crore in Q3FY20 against Rs. 5,585 crore in the corresponding quarter, previous year. Deposits and loans grew 25% and 20% YoY respectively with CASA ratio coming out at 40%. GNPA and Net NPA ratio stood at 1.4% and 0.5% rising 4 and 6 bps YoY respectively in the December quarter FY20. Retail advances grew 14% while wholesale jumped 26% YoY. The coronavirus pandemic has added to the uncertainty for coming quarters in the banking sector, and HDFC Bank’s capital adequacy ratios and other numbers will be closely watched. Though the HDFC Bank behemoth still looks like a steady ship, investors would be watching how it weathers the pandemic crisis, the bank’s leadership transition in October 2020 and rumoured investment in beleaguered peer, Yes Bank. December Quarter FY20 saw growth in both loans and deposits HDFC Bank reported revenues of Rs. 36,039 crore in December quarter FY20 against Rs. 30,811 crore in the same period, previous year rising 13% YoY. Net Interest income (NII) was also in the same plane reporting 13% YoY growth at Rs. 14,173 crore compared to Rs. 12,577 crore in the same period, previous year. Operating profit came out at Rs. 6,276 crore growing 7% YoY compared to Rs. 5,857 crore corresponding December quarter, previous year. Improvement in cost of funds led to stable NIM, maintained at 4.2%, same as Q2FY20 but with 10 bps fall YoY. Net profit grew 33% YoY at Rs. 7,416 crore in Q3FY20 against Rs. 5,586 crore in the corresponding quarter, previous year aided by lower tax rate and higher other income. With respect to the balance sheet parameters, deposits and loans grew 25% and 20% YoY respectively with CASA ratio coming out at 40%. Asset quality remained stable with GNPA and Net NPA ratio at 1.4% and 0.5% rising 4 and 6 bps YoY respectively in December quarter FY20. Though slowing growth and current governance issues in the Indian financial system are gnawing investors, HDFC Bank seems to be largely insulated, evident from its healthy operational performance and strong bottom-line numbers. The ‘reliable one’: A reputation for steadiness HDFC Bank has been a beacon of stability, profitability and high governance standards. Analysts maintained their bullish stance after Q3FY20 results as the bank came out with better than expected results despite the uncertain and volatile growth scenario. The slowdown impact was evidently visible on slowing momentum of NII and subdued performance of its retail growth engine. The coronavirus pandemic has now added to the uncertainty for coming quarters in the banking sector, and HDFC Bank’s capital adequacy ratios and other numbers will be closely watched. In the December quarter, NII growth slowed down considerably from the double-digit early twenties growth rate, roughly 23% in June quarter FY20 to 13% YoY in December FY20. This lower growth is however offset by robust other income (32% of net revenues), rising 36% YoY mainly driven by its fee component which constitutes 68% of total other income or non-interest revenue of the bank. Fee income growth jumped 24% YoY in Q3FY20 as third-party distribution and payment products (debit and credit cards up 20-25%) have performed reasonably well. The management expects to maintain 15-17% core fee income growth over medium and long term. In the retail engine, slowdown has hit its auto segment which is almost stagnant YoY. The auto sector has seen vehicle demand slow considerably, a trend likely to intensify in the next quarter. Excluding the vehicle segment, growth is higher, around 24% YoY in December quarter FY20, while overall retail growth stands at 14% YoY and 5% sequentially. The bank management reiterated that there is no stress build up with respect to asset quality in the retail segment as filters have been put across various product segments and auto, credit cards, personal loans are exhibiting beneficial trends. CVs and commercial equipment is the only concern area as they are highly dependent on the investment climate in the economy. Major growth drivers for retail advances have been credit cards, home loans and personal loans growing at 29%, 19% and 23% YoY in Q3FY20. Corporate loan book has been performing well over the past few quarters as it reported robust growth of 26% YoY and 4% sequentially in December quarter FY20. Segmented into corporate and business banking, both sub-segments have performed well. There has been a strong demand pick from the last week of November in business banking. Mr. Rahul Shukla, Corporate and Business Banking Head, HDFC Bank said, “There is a broad pickup in demand especially in Punjab, southern India, central and eastern India. Trends in Gujarat and adjoining areas remain soft and we expect it to pick up in this quarter”. He further added that the corporate banking segment also witnessed broad based growth across public sector clients especially in sectors such as material, energy, agriculture, power, fertilizers and discretionary consumer. HDFC bank is the second largest corporate lender after SBI. With the wholesale or corporate segment offsetting lower retail growth and non-interest revenue buffeting the bank’s bottom-line, HDFC bank has maintained its growth and profitability matrix. It remains to be seen if this balance holds if quarantining and business closures continue beyond March 31st. Other parameters such as strong branch expansion (600 new branches in FY20), initiating aggressive CSM (common service centres) for higher rural and semi urban penetration, stable asset quality, lower cost to income ratio (37.9% vs 38.4% in Q3FY19) in spite of higher investments in branch expansion, people and technology and improving RWA ratio at 68% in Q3FY20 compared to 72% in the same period, previous year due to better market risk, improved ratings, favourable lending mix and reduced investments in mutual funds continue to allure investors. Though the HDFC Bank behemoth still looks like a steady ship, investors would be watching how it weathers the pandemic crisis, the bank’s leadership transition in October 2020 and rumoured investment in beleaguered peer, Yes Bank.20-03-2020