HDFC Bank, one of the leading private sector lenders, on Tuesday reported growth of 23.11% in its fourth quarter net profit.
The bank earned a profit of Rs 23.27 billion for the quarter ended Mar. 31, 2014. Analysts had expected profit of Rs 23.72 billion. The bank's quarterly income totaled at Rs 127.9 billion, an increase of 14.94% over Rs 111.28 billion in the same period a year ago.
Commenting on the numbers, Vaibhav Agrawal, VP research, Banking, Angel Broking said, ''HDFC bank continued its trend of delivering consistent earnings performance quarter after quarter and registered a bottom-line growth of 23% yoy for 4QFY2014. Overall, the bank reported earnings growth of 23% yoy. From a long term perspective we believe HDFC bank is a decent investment. Hence, we recommend Buy rating on the stock.''
Kashyap Jhaveri, research analyst, Emkay Global Financial Services, said, ''Tight costs plus superb asset quality drive inverted funnel growth: revenue +14% yoy, PPOP +28% yoy, PBT + 31% yoy. Higher tax rate drives lower PAT growth at 23%. Asset quality holds up superbly - remains healthy with GNPA/ NNPA ratio stable at 1%/0.3%. Provision cover also maintained at 73%. Superior RoA of 1.9% delivered without compromising on provision coverage or asset quality for FY14. With recent run up in the stock price, assign HOLD; retaining TP of Rs 760.''
While Kajal Gandhi, analyst, ICICIdirect said, ''HDFC Bank has grown its balance sheet at 23% CAGR to Rs 4,000 billion over FY07-13 maintaining its profit growth of 30% CAGR to Rs 67.26 billion. The bank remains a portfolio stock. We have a HOLD rating from a medium term view with a target price of Rs 750 (3.2x FY16E ABV)."
Shares of the bank gained Rs 5.95, or 0.82%, to trade at Rs 732.30. The total volume of shares traded was 27,830 at the BSE (9.41 a.m., Wednesday).
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