HDFC Bank Delivers Another Quarter Of Resilience, Consistency: ICICI Securities 

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ICICI Securities Report

HDFC Bank Ltd.’s Q3 FY21 performance with consistent 18% YoY earnings growth at Rs 87.6 billion beats ours as well as consensus expectations.

Performance was buoyed by lower credit cost (1.3%), rebound in fee income (up 10% YoY), and sustained net interest income growth (more than 15%).

Management’s resilient narrative was encouraging:

1. Flat pro forma gross non-performing assets at 1.38%, pro forma slippages at less than 2%, restructuring at 0.5%;

2. Demand resolution for retail portfolio at 97% (similar to October, 95% in September);

3. Vulnerable small and medium enterprise stress portfolio further down to 2.3% (from 3% and initial estimate of 9%).

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