HDFC's gross stage 3 assets increased to 2.6% versus 2.34% QoQ (vs 2.2% YoY) better than its peer (LICHF at 5.93%). Restructured assets stood at 0.9% (vs 0.8% FY21) of AUM which majorly comprises of one large real estate builder group (62% of restructured). The overall collection efficiency ratio for individual loans has improved during the June month to pre-COVID levels and stood at 98.3% vs 98% in March'21.

PAT declined by 2% YoY (down 6% QoQ) led by higher tax bracket due to tax on capital gains on sale of equity was lower (23% vs 15% YoY). NII grew by 22% YoY led by improvement in margins. PPoP declined by 4.5% YoY due to higher operating expenses (up 39% YoY).

Commenting on the result review, IDBI Capital said, "We have a Buy rating with TP at Rs.2,950, valuing parent business at Rs1,736 (2.9x P/ABV FY23) and rest for the subsidiaries."

Disbursements for individual loan segment grew by 181% YoY in July month; highest ever in a non-quarter month. Provisions stood at Rs.131.89 billion higher than regulatory requirement (Rs.57.78 billion). It should support asset quality shocks in P&L.

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