Views on HDFC Bank 2QFY2016 Results: Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research-Banking, Angel Broking) on HDFC Bank 2QFY2016 Results:

"HDFC bank continued its trend of delivering consistent earnings performance quarter after quarter and registered a net interest income growth of 21.2% yoy for 2QFY2016 which was in line with the expectations. The bank's loan book grew by 27.9% yoy which was aided by NII growth of 21.2% yoy. Non-interest income for the bank surprisingly grew at a pace of 24.7% yoy. While operating expenses grew by 19.8% yoy, pre provision profits were up by 24.2% yoy. On the asset quality front, the bank continued its steady performance inspite of the challenging macro environment with the Gross and net NPA levels for the bank declining to 0.91% and 0.25% from 0.95% and 0.27% qoq respectively. Overall, the bank reported earnings growth of 20.5% yoy. In light of current macro environment, the current earnings trajectory of 20%+ yoy is strong which in our view, justifies a premium valuation multiple. Hence, we recommend BUY rating on the stock."

Shares of HDFC BANK LTD. was last trading in BSE at Rs.1093.2 as compared to the previous close of Rs. 1096.2. The total number of shares traded during the day was 118040 in over 4143 trades.

The stock hit an intraday high of Rs. 1101 and intraday low of 1091.5. The net turnover during the day was Rs. 129463798.

Source : Equity Bulls

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