HDFC Bank Ltd. - Q3 FY23 Earning Highlights | Globe Capital
15-Jan-2023
HDFC Bank Ltd. – Q3 FY23 Earning Highlights

The bank has improved its asset quality

Q3 FY23 Earning Overview and Verdict
CMP
Rs. 1600
Verdict
Beat the market estimates

Earning Highlights Q3FY23:

  • The Bank reported net profit of Rs 12,259 crore for quarter ended December 2022, marking an upside of 18.53% from profit of Rs 10,342 crore during the same quarter last year.
  • Its net interest income (NII) or the difference between interest earned on loans and expended on deposits rose nearly 25% to Rs 22,987.83 crore compared with Rs 18,443.48 crore during the same period last year.
  • Its EPS for the quarter ended December 31, 2022, Rs. 21.99 as compared to Rs 18.67 in last year same quarter.
  • Its asset quality remained stable during the quarter as gross NPAs, came in at 1.23% versus 1.23% in the previous quarter and as against 1.26% during the same period last year.
  • Net NPAs as a percentage of total advances remained unchanged sequentially at 0.33%.
  • In absolute terms, gross NPAs came in at Rs 18,764 crore.
  • The bank’s provisions during the quarter fell 13.38% to Rs 2,806 crore from Rs 3,240 crore in the previous quarter.
  • As of December 31, 2022, the bank’s distribution network was at 7,183 branches and 19,007 ATMs.
  • Balance Sheet: As of December 31, 2022 Total balance sheet size as of December 31, 2022 was Rs. 2,295,305 crore as against Rs.1,938,286 crore as of December 31, 2021, a growth of 18.4%.

Total Deposits showed a healthy growth and were at Rs. 1,733,204 crore as of December 31, 2022, an increase of 19.9% over December 31, 2021. CASA deposits grew by 12.0% with savings account deposits at Rs. 535,206 crore and current account deposits at Rs. 227,745 crore.

Valuation & View:

At the CMP of Rs. 1600, the stock is trading at expected FY24 P/BV multiple of 2.4 times with the expected Book Value of Rs. 665, which is fairly valued.

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