HDFC Bank (NYSE:HDB) Announces Quarterly Earnings Results, Hits Estimates

HDFC Bank (NYSE:HDB) posted its quarterly earnings results on Saturday. The bank reported $0.40 EPS for the quarter, hitting analysts’ consensus estimates of $0.40, reports. The firm had revenue of $5.10 billion during the quarter, compared to analyst estimates of $4.92 billion. HDFC Bank had a return on equity of 11.84% and a net margin of 15.96%.

Here are the key takeaways from HDFC Bank’s conference call:

• Business momentum improved: deposits rose 18.8% year over year and AUM increased 15.3%, while retail disbursements, credit-card issuance, and MSME lending accelerated. Management also cited stronger branch productivity and faster service turnaround times.
• Asset quality remained resilient, with GNPA at 1.11% and credit costs at 44 basis points. Reported quarterly profit was approximately INR 19.5 billion, up 12.7% excluding trading gains, with ROA holding near 1.8%.
• Management indicated that net interest margins may have reached a bottom at 3.32%, with repricing of the largely floating-rate loan book expected to provide a tailwind from the next quarter. However, the full-quarter cost impact of FCNR deposits will partly offset this benefit.
• Incoming CEO Anup Bagchi said he will first consult regulators, customers, shareholders, and employees before presenting priorities on growth, margins, asset quality, productivity, and capital deployment in the coming months.
• Liability metrics remain an area of concern: retail deposit momentum was obscured by large one-off outflows, the bank continued using wholesale funding including certificates of deposit, and LCR stood at 113%. Management said it aims to keep LCR around 110%–120% while rebuilding core retail liabilities.

HDFC Bank Stock Performance

Shares of NYSE HDB opened at $23.84 on Monday. The company has a market cap of $122.32 billion, a PE ratio of 14.02, a P/E/G ratio of 1.16 and a beta of 0.61. The firm’s 50 day moving average price is $22.91 and its 200-day moving average price is $24.26. HDFC Bank has a 52-week low of $21.70 and a 52-week high of $37.45.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on HDB shares. Zacks Research upgraded HDFC Bank from a “strong sell” rating to a “hold” rating in a research report on Friday, July 17th. Weiss Ratings cut HDFC Bank from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, September 25th. The Goldman Sachs Group assumed coverage on HDFC Bank in a research report on Friday, August 21st. They set a “buy” rating for the company. HSBC lowered HDFC Bank from a “buy” rating to a “hold” rating and cut their price objective for the stock from $30.80 to $26.10 in a report on Monday, August 31st. Finally, Wall Street Zen lowered HDFC Bank from a “hold” rating to a “sell” rating in a report on Saturday, July 18th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $26.10.

About HDFC Bank

HDFC Bank Limited is an Indian banking and financial services company headquartered in Mumbai, India. Established in 1994, the bank provides services to individuals, businesses, corporations and institutions through a broad network of physical branches, ATMs and digital banking channels.

Its principal offerings include savings and current accounts, deposits, personal and home loans, vehicle and consumer financing, business and commercial lending, credit and debit cards, payments, investment and wealth-management services, and foreign-exchange and treasury products.