The fourth quarter update has been excellent for HDFC Bank. There has been a strong showing in the commercial banking and corporate segments.
HDFC Bank Share Price Today: The shares of private sector major HDFC Bank are seeing strong gains today. In the intraday, the bank’s stock gained 10 percent to reach Rs 1657. Whereas on Friday it closed at Rs 1506. The bank has released its figures for the fourth quarter which are very strong. Along with commercial banking, revival has also been seen in corporate banking. Whereas HDFC and HDFC Bank have announced a transformational merger. Under this deal, HDFC will have 41 percent stake in HDFC Bank. Due to this, the sentiment regarding the stock has become strong today. Brokerage House is also looking bullish on the stock and is expecting good returns going forward.
strong loan growth
Brokerage house Motilal Oswal says that the fourth quarter update has been excellent for HDFC Bank. There has been a strong showing in the commercial banking and corporate segments. There has been a great revival in retail loans. All this will support PPOP growth. Further recovery in margins is expected. The trend of retail deposits is also positive. The CASA ratio of the bank has improved to 48%. The brokerage house has given investment advice in the stock with a target of Rs 2000. The stock had closed at Rs 1506 on Friday. In this sense, 33 percent return is possible in this.
recovery in corporate banking
Brokerage house Morgan Stanley has given investment advice in the stock and has an overweight rating. A target of Rs 1800 has been given for the share. The brokerage says that the loan growth and deposit growth have been strong in terms of what the bank has updated in the fourth quarter. The bank is continuously increasing its market share. Loan growth is strong in retail and commercial. While there is a recovery in corporate banking as well.
how was the fourth quarter
The bank’s total advance has increased by 20.9 percent year-on-year or 8.6 percent on a quarterly basis to Rs 13.7 lakh crore. Retail loans have grown by 15 per cent year-on-year and 5 per cent on a quarterly basis. Corporate and other wholesale books have grown by 17.5 per cent year-on-year. Deposit base has grown 16.8 per cent year-on-year to Rs 15.6 lakh crore. CASA Deposit/TD growth has been 22%/12.3 % per yyyyyy. CASA Mix has increased by 90bp to 48%. Retail and wholesale deposits have grown by 18.5%/10% year-on-year. The bank has added 563 branches in the fourth quarter. By the end of March 2022, the total branches have become 6342.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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