Business »  Topic »  Stock corner: ‘Buy’ HDFC, results reflected a modest showing

Stock corner: ‘Buy’ HDFC, results reflected a modest showing


On a reported basis, retail loan spreads were at 1.95% (up 4 bps q-o-q) and corporate loan spreads at 3.09% (2 bps higher y-o-y) for Q2FY20.

HDFC’s bottomline was boosted by GRUH stake sale, but core performance was soft. While loan growth was muted in non-retail, retail loans did better (net retail AuM ~17% y-o-y). NIMs were stable. Developer loans are in a spot of bother (non-retail GNPL up 19 bps q-o-q). While near term could be somewhat patchy, HDFC’s better underwriting skills, strong distribution and cost of funds advantage will support longer-term earnings growth. Buy ...


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