HDFC Bank, the leading private sector lender, reported stable GNPA at 1.32% versus 1.38% QoQ while NNPA at 0.4% (0.4% QoQ). However, annualized slippages remain at 1.66% vs 1.86% QoQ. Restructuring under RBI resolution framework stood at 57bps of advances; led by personal loans.

Post outages issue, RBI asked HDFC bank to stop launches of new digital business and stops issuing new credit cards. Thus, need to watch for RBI clearance as bank had submitted the plan, said IDBI Capital in its report.

Advances saw a growth of 14% YoY vs 15.6% YoY in Q3FY21 led by wholesale loans (21.7% growth) and retail loan growth of 6.7% however wholesale and Retail mix stood at 53:47 vs 50:50 (FY20). Deposits saw a growth of 16% led by CASA growth of 27%. Profitability (PBT growth) remain stable while provision seen an uptick; PAT remain stable at 18%. NII grew by 13% YoY against a loan growth of 14% YoY. PPoP grew by 20% YoY as cost to income ratio improved (37% versus 39% YoY); fee income grew by 20% YoY versus 10% YoY (Q3FY21).

Commenting on the result review, IDBI Capital said, "As overall economy continues to improve, we believe that HDFCB would see the best revival in growth within the sector. We have largely retained our estimates and maintain BUY with the target price of Rs.1,740 based on P/Bv of 3.6x FY23."

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