HDFC Bank Limited (NSE:HDFCBANK) (BSE:500180)

HDFC Bank Limited (HDFC Bank) is a banking company. The Bank is engaged in providing a range of banking and financial services, including commercial banking and treasury operations. The Company’s subsidiaries include HDFC Securities Limited and HDB Financial Services Limited. The Bank operates in four segments: Treasury which consists of net interest earnings from the Bank’s investment portfolio, money market borrowing and lending; Retail Banking provides financial services of various deposit products, of retail loans, credit cards, debit cards, depository, bill payments and several transactional services; Wholesale banking’s financial institutions and Government business group offers commercial and transaction banking products to financial institutions, mutual funds, public sector undertakings, central and state Government departments, and other banking business include income from para banking activities, such as credit cards, debit cards and primary dealership business.

Official website: www.hdfcbank.com

HDFC Bank reported a healthy earnings performance for 1QFY2016, with a bottom-line growth of 20.7% yoy to Rs2,696cr. Its NII grew by 23.5% yoy, aided by a 22.4% yoy growth in advances. Advances grow strongly; Asset quality remains healthy: During 1QFY2016, the loan book grew by 22.4% yoy, led by 24.6% yoy growth in the retail book. As a result, the retail contribution improved to 49% of total loans. Within retail, credit cards, personal loans and home loans grew by 27.1%, 34.3% and 37.4% yoy, respectively. Auto loans continued to grow at a healthy rate due to pick up in underlying growth and with the bank gaining market share in this segment, while CV/CE saw a growth mainly on account of replacement demand. Going forward, the bank is well positioned to grow faster than the industry due to branch addition and increase in distribution network. Savings and current deposits went up by 18.3% and 23.1% yoy, respectively; however growth in term deposits, both retail as well as wholesale, was much faster. As a result, the CASA ratio fell by 337bp yoy to 39.6% as of 1QFY2016, while the NIM came off slightly by 6bp qoq at 4.34%. The bank’s non-interest income (excluding treasury) grew by 28% yoy, with fee income growth of 21.8% yoy. Fee income growth was healthy with pick up in other wholesale and retail products, while third party products were lackluster due to the seasonality factor. The bank booked profit of Rs70cr on sale of debt units, which led to the profit on sale of investments coming in at Rs126cr in 1QFY2016 (vs Rs25cr in 1QFY2015). On the asset quality front, the Gross NPA ratio went up by 5bp qoq to 0.95%, while the Net NPA ratio went up by 7bp qoq to 0.3%. The bank has created floating provision of Rs65cr; the Provision Coverage Ratio (PCR) increased by 188bps yoy to 71.9% in 1QFY2016. Restructured advances remained steady at ~0.1% of gross advances. Outlook and valuation: Though the current earnings trajectory at 20%+ yoy is lower than its illustrious track record of 30%+ earnings growth, still in light of the current macro environment, it is impressive. Going forward, a likely economic recovery would reflect in higher loan growth, which in our view, justifies a premium valuation multiple. At the current market price, the bank is trading at 3.3x FY2017E ABV. We recommend an Accumulate rating on the stock, with a target price of Rs1,255.

Source: http://www.angelbroking.com

Letzbank is an online portal that provides to its customers a one stop solution for all their financial needs by offering them a wide range of financial products such as personal loans, home loans, car loans, two wheeler loans, education loan, business loans, professional loans, loan against properties, loan against securities, farm equipment loans, construction equipment loan, commercial equipment loans and gold loans. Letzbank provides its customers a single window for them to come, compare, plan, pick, and choose the financial product or schemes they are looking for.

History
Letzbank emerged as a result of brainstorming of five highly qualified banking professionals who themselves were not only the employees of various banks but were also customers of various banks who used a variety of financial products themselves for meeting the financial needs in their lives. They not only borrowed personal loans, car loans, home loan just like all of us do today but they also used credit cards just like we all do in our daily lives. With an extensive experience in banking sector they decided to step further to meet the financial needs of masses with a sole aim of “Customer Service” in a simplified manner by partnering with banking and non banking organizations.
Letzbank aims at showcasing various financial products being offered by its partner banks on its website Letzbank. Anyone who is looking for a loan can simply logon to the website and choose from a variety of products being displayed on the website. Not only you can choose from a variety of products for yourself but also design your own loan. With the help of our specialized tools and services you can calculate your EMI, Rate of Interest, and Loan Tenure along with NIL FORECLOSURE charges. Tools and services also will enable you to know the status of your loan at various stages of your loan tenure through a graphical representation

Self Funded Company
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Product and Services
Letzbank provides various financial products such as personal loans, home loans, car loans, two wheeler loans, education loan, business loans, professional loans, loan against properties, loan against securities, farm equipment loans, construction equipment loan, commercial equipment loans and gold loans at LOWEST EMI, LOWEST RATE OF INTEREST, LONGER TENURES with NIL FORECLOSURE CHARGES with FREE SERVICE CHARGE for online applications submitted at Letzbank .