HDFC Bank Shares Hit High Record, Rises 25% In Three Months
The private lender's stock surpassed the market by 10% last week, against the S&P BSE Sensex, up 5.6%.
By blogwriternisha
HDFC Bank shares hit a record high of Rs 1,308, up 3% on BSE on Friday, surpassing its previous high of Rs 1,304.10, hit on December 19, 2019.
The private sector lender's stock outperformed the market, jumping 10% last week, against a 5.6% rise in the S&P BSE Sensex. Over the past three months, it has risen 25%, compared to a 10% gain in the benchmark.
HDFC Bank had posted strong results for the September quarter (T2FY21) with net profit growing 18.4% year-on-year (YoY) to Rs 7,513 crore thanks to substantial growth in interest income and other income.
The bank's net interest income (NII) for T2FY21 increased 16.7 percent year-on-year to 15,776 crore rupees, driven by asset growth of 21.5 percent and a margin of base interest for the quarter of 4.1 percent. On the asset quality front, the bank's gross non-performing assets (NPA) fell to 1.08% of gross advances as of September 30, 2020, from 1.38% a year earlier. Likewise, net APMs also fell to 0.17% from 0.42%.
Company management remains optimistic about a cyclical recovery. Real Estate Loan (LAP) and retail working capital disbursements are already at pre-Covid levels and unsecured loans will reach pre-Covid levels by October. Bureau data shows auto and home loan applications have exceeded pre-Covid levels.
With a focus on high-end clients across all segments, superior underwriting and sound provisioning and capital buffers (CET ratio 1 to 17%), Dolat Capital analysts expect HDFC Bank is among the best placed in the current uncertainty.
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