Views on HDFC Bank 1QFY2016 Results: Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research - Banking, Angel Broking) on HDFC Bank 1QFY2016 Results:

"HDFC Bank reported 1QFY2016 results, which were in-line with our estimates, with profit growth of 20.7% to INR 2696cr. Advances growth of 22.4% yoy led to 23.5% yoy growth in Net Interest Income. NIM was at 4.3% as compared to 4.4% in 4QFY2015. Non-interest income grew at healthy pace by 33% yoy, leading to operating income growth of 26% yoy. Operating expenses grew 25.9% yoy resulting in stable cost-income ratio at 45.2% on y-o-y basis. On the asset quality front, its reported Gross NPA ratio was 0.95% in the current quarter as against 0.93% in 4QFY2015 and 1.07% in 1QFY2015, while Net NPA ratio was 0.27% as compared to 0.25% in 4QFY2015 and 0.32% in 1QFY2015. At the CMP, the stock is trading at 3.3x FY2017E ABV. We recommend ACCUMULATE rating on the stock."

Shares of HDFC BANK LTD. was last trading in BSE at Rs.1114.35 as compared to the previous close of Rs. 1098.6. The total number of shares traded during the day was 273643 in over 5495 trades.

The stock hit an intraday high of Rs. 1117 and intraday low of 1089.25. The net turnover during the day was Rs. 303469489.

Source : Equity Bulls

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