HDFC Bank revenues and PAT expectations hit home with an NII score of INR 46.34 B up 15% on year and NPAs tick down to 1% (Gross) Deposits (22.9% and Advances(22.9%) grew evenly and Savings Accounts balances are INR 947 B, up 16% , Loans up 17% and Eff (Cost to Income) back to 42% from 47% last year
FCNR growth was $3.4 B in the quarter
This edition of the Morning report running late however will be all we give you on Friday. Markets may still not like the bank’s NII just shy of estimates as it has not been ramping up Fee and Charges in Non Interest Income as we have highlighted earlier and the same is probably advised on he Indian scenario seeing charges apart from interest as a customer service issue and even on pricing. PAT is up 25% on year, creditable but probably not as much as their run rate has been till now.
HDFC Bank also probably needs to flesh out its Transaction Banking performance in the current scenario. Fee Income jumped up to INR 15.75 B barely moving on the quarterand up just double digits over year
ICICI Bank tick down from here may shuck some other sector underperformers as banking remains under a cloud. I am waiting for the CAR also to start balancing out ata lower 13% , the 15% Basel I score as the india guidelines do not jump RWA in traditional lending assets, sees HDFC Bank remain the least impacted and thus likely to lend better and higher excet for higher rate concerns on NPAs. the industry wide NPS fear is probably rooted outside rates and louding others not just from conservative lending which seems to be slowly counting against performers like HDFC Banka nd YES Bank at this stage
NIMs at 4.2% underline the problems were outside Central Bank mandated rates and asset quality issues. FX an Derivatives have moved up INR 3.33 Bln