HDFC Bank Q1FY18 Results- Core performance continues to be robust: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst - Banking, Angel Broking):

"HDFC Bank came out with yet another quarter of good results. Loan growth of 23% and Deposit growth of 17% were marginally ahead of our expectations. Asset quality of the bank saw some stress during the quarter as GNPAs went up by 19 bps to 1.25%. However, the management has clarified that 60% of the incremental slippages were from the agriculture segment. A series of loan waivers across large sates, impacted the credit discipline among agri borrowers and hence the rise in NPAs. The bank has maintained that there could be some stress on the agri loan portfolio going ahead also. However, given that the core loan portfolio has remained largely stable and growth rates have picked up again, the earnings visibility remains fairly stable for the bank. At the CMP the stock trades at 3.7x its FY19 Adj BV. We believe HDFC Bank will continue to attract premium valuations and we have an ACCUMULATE rating on the stock."

Shares of HDFC BANK LTD. was last trading in BSE at Rs.1734.55 as compared to the previous close of Rs. 1703.35. The total number of shares traded during the day was 261768 in over 9666 trades.

The stock hit an intraday high of Rs. 1740.2 and intraday low of 1696. The net turnover during the day was Rs. 450798895.

Source : Equity Bulls

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