INSUBCONTINENT EXCLUSIVE:
Global brokerage firms maintained their bullish view on HDFC Bank after it posted a 21 per cent rise in net profit on Saturday for the June
quarter on the back of strong retail lending.
Net profit increased to Rs 5,568 crore in Q1FY20 over Rs 4,601 crore in the corresponding
quarter last year.
The results came in line with market expectations as analysts had expected the bank to clock a net profit of Rs 5,600
The global brokerage firm retained the rating due to a strong balance sheet.
Domestic brokerage firm Motilal Oswal Financial Services said
a target price of Rs 2,700
However, it cut FY20 and FY21 EPS by 3 per cent
Shares of the lender were trading over 2 per cent down at Rs 2,326 at around 9.27 am (IST), while the benchmark BSE Sensex was down 295
points, or 0.77 per cent, at 38,041.32 at around the same time
After providing Rs 2,965.4 crore for taxation, the company earned a net profit of Rs 5,568.2 crore, an increase of 21 per cent over the
quarter ended June 30, 2018, the bank said in a statement.
Net interest income for the quarter ended June 30, 2019 grew by 22.9 per cent to
Rs 13,294.3 crore, from Rs 10,813.6 crore for the quarter ended June 30, 2018, driven by asset growth and a core net interest margin for the
quarter of 4.3 per cent.
Provisions and contingencies increased by 60 per cent YoY
bank to deliver 19 per cent and 20 per cent loan book and PAT CAGR over FY19-21, led by stable margins and continued improvement in
Q1FY20 with percentage of gross non-performing assets (NPA) increasing to 1.40 per cent for the quarter ended June 2019 against 1.36 per
cent in the preceding quarter ended March 2019
