Views on HDFC Bank Limited 1QFY2017 Results: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst- Banking, Angel Broking) on HDFC Bank Limited 1QFY2017 Results:

"HDFC Bank's business growth during the quarter remained strong with loan growth of ~23%; this led to 22% growth in net interest income. Other income saw some moderation growing by only 14%. While top line growth was more or less in line with expectations, there was a 19% YoY jump in provisions which resulted in PAT growth of 20%. After maintaining very stable set of asset quality, for many quarters there was some visible sign of pressure in asset quality during the quarter as GNPAs went up to 1.04% from 0.95% YoY.

While this appears to have gone up compared to other large private players it remains much better and doesn't seems to be a cause of concern. HDFC bank has been our top pick in the banking space, and we believe it will be able to deliver 20% CAGR earnings growth going ahead. At the current level the stock trades at 3.1x its FY18E Adj BV. We maintain our ACCUMULATE rating on the stock."

Shares of HDFC BANK LTD. was last trading in BSE at Rs.1246.55 as compared to the previous close of Rs. 1247.9. The total number of shares traded during the day was 52810 in over 1105 trades.

The stock hit an intraday high of Rs. 1250 and intraday low of 1235.05. The net turnover during the day was Rs. 65558193.

Source : Equity Bulls

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