HDFC Bank - Steady quarter but upside seems capped for now - Emkay

- HDFC Bank Q4FY13 NII/PAT growth at 21%/30% in line with estimates. Reported absolute NII at Rs43bn beats estimates due to certain adjustments

- Fee income declines 1.4% qoq - first such decline in last 8 years in Q4, driven by some bunch up in Q3FY13, revision in insurance commission rates and lower retail fees

- Other positives: (1) loan growth at 23% yoy driven by retail loans (2) CASA at 47%, down just 100bps yoy in tough times (3) NIMs up 20bps qoq and (4) asset quality maintained

- Strong growth in loans, healthy CAR and lower delinquencies put HDFCB in higher orbit than peers. Valuations at 3.9x/3.2x FY14/FY15 ABV leave limited room for upside

Source : Equity Bulls

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