HDFC Bank - Weakness continues.. - Kotak

HDFC Bank continues to struggle on key growth metrics—revenue growth at 18% yoy, loan growth at 23% yoy, pre-provisioning operating profit at 17% yoy and fee income at 11% yoy. Increasing competition in retail and a slowing consumption cycle combined with a shift towards corporate loans are likely to increase NIM pressure.

Earnings support in the medium term is likely to be driven by treasury and improvement in cost ratios. The stock is trading at expensive multiples. Maintain REDUCE.

Source : Equity Bulls

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