HDFC Bank - Q1FY14 Result Update - GEPL Capital

It reported a loan book growth of 21% Y-o-Y. Incremental loan growth came largely from the corporate loan portfolio. Retail loan consists of 54% of the loan book & corporate of 46% of the loan book. Deposit growth of 18% Y-o-Y. CASA stood at 44.7% vs 47.4% in FY13. Branch Network came upto 3119 branches & 11000 ATMs. 54% of this network is in semi urban & rural areas. Retail & Wholesale contributed 45% & 55% respectively to incremental slippages.

Margins remained stable as incremental loan growth came largely from the corporate loan portfolio which are low yielding products. Fee income has muted mainly because Commission rates on insurance piece as fallen over the quarter in insurance product–driven by change in mix of the product sold. Regulatory change during the year (inter ATM charges etc) have had an impact on other income. Some deviation in retail possessing fees with growth coming for non-EMI products leading to lower subvention fees. Restructured book stands at 0.2% vs 0.3% Y-o-Y.

Source : Equity Bulls

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