- 04 Nov 2022
- ICICIdirect Research
HDFC Ltd reports decent Q2FY23 numbers
HDFCBANK - 1637 Change: -1.65 (-0.10 %)News:
HDFC Ltd reported decent results with net interest income growth of 12.9% YoY, 4.3% QoQ as margins were steady QoQ and fell 20 bps YoY. Other income was up ~19% YoY, 47.5% QoQ to Rs 1837 crore, led by strong dividend income during the quarter. C/I ratio was at 9.1% during the quarter. Provisions declined 8% QoQ but were up 4.6% YoY to Rs 473 crore. PAT for the quarter was up 17.8% YoY, 21.4% QoQ to Rs 4454 crore. Asset quality further improved as GNPA ratio declined from 1.78% to 1.44% QoQ led by healthy collection efficiency, which was at 99% for the individual segment. Credit growth was healthy as it was up 14.3% YoY to ~Rs 5.95 lakh crore. Growth in the individual segment was healthy at 20% YoY (AUM basis)
View:
HDFC Ltd’s market positioning with healthy demand outlook and strong fundamentals bodes well. Margin trajectory to be watched ahead. However, merger related uncertainty is expected to keep prices in a range
Impact:
Neutral