HDFC Bank - Subsidiary drives impressive performance - Kotak

Strong performance from one of HDFC Bank's subsidiaries, nil ESOPs issued to employees and a change in the reporting format on loan disbursements for retail loans (positive NIM impact) were some highlights of the annual report. We believe current valuations ignore the risk arising to its earnings profile (possible deterioration of revenue due to stiff competition and earnings, driven by operational efficiency).

Valuations are expensive, we maintain our REDUCE rating.

Source : Equity Bulls

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