Management Quality & Shareholding Pattern of HDFC Bank Stock

"In the MIDST of Chaos, There is Also Opportonity" by Sun Tzu Was a Chinese Philosopher, and writer. So, is there. Ter its drastic fall?

Hdfc Bank, The Second Most Valuable Brand in India, Has Recently Become The Most Disliked Stock in the Market. Ced a Nearly 10% DeCline in the Middle of January 2024 Follow the Release of its q3 Earnings.Being The Most Heavyweight Stock of Nifty 50 and Nifty Bank, Both the Indices Fell Heavily. Is Trading at ₹ 1478/Share. So, is it a good time toAccumular HDFC Bank Stock?

In TODAY ’s Blog, we will be doing hdfc banks of analysis to understand what is wentally in Q3 Earnings and why hdfc bank was public. So, with, FURTHER ADO, Let ’s Get Started:

To Start with HDFC Bank Stock Analysis, The First and Foremost Thing IS to have an under any of the company.

In India, hdfc bank is one of the top-time bank in the private banking sector. The topal business (Loans + DEPOSITS) td. And hdfc bank. With effect from 1st july2023, The Bank Has Merged with its Parent Company, HDFC LTD, Which WAS A Behemoth in the Housing Finance Segment with An Aum of ₹ 7 Lakh CROREATED SYNERGE SYNERG SYNERG SYNERG SYNERNERG SYNERNERG y for this large financial constomrate, which is exten to benefit from the lowOperating Cost Ratios of HDFC LTD and the LOWER COST of Funds from HDFC Bank.

Hdfc Bank Offers a Range of Services, for Both Commercial and Investment Banking. RENOWNED for its Robust Presence in the RETail Segment and Strong Asset Quality (HDFCCCC Bank is considered one of the top-performing banks in the country.

In the Above Image, you can see the loan and deposit mix of hdfc bank as of september 23.

While Analyzing The Stocks, You Must under the Overal Sector in Which the Stock isGuoabong Stock. NEVERTHESS, the Bank has a solid foundation, but HDFC Bank ’s Stock AN Alysis is unfinished without under overstnding the overal banking sector.Ahmedabad Investment

The Recent Data from the Reserve Bank of India (RBI) in ITS Fortnightly Release Indicates a Noteworth of 20% Year-ON-Year (YOOY) in Bank Credit FOR SEPTEMBER 20 23. This Positive Trend Suggests An Increasing Demand for Credit within the Indianeconomy.

One SIGNIFICANT METRIC to Assess the Potential for FURTHER GROWTH in the BankR is the Credit-GDP RATIO. Ands at approximately 55%, A Figure that is comparatively low that of deverted countries andOther Members of the Brics (Brazil, Russia, India, China, and South Africa).

The Lower Credit-TO-GDP Ratio Implies that there is Substantial Room for Expansion in India's Banking Sector. FURTHERMORE. Inancial inclusion, and technology, the Government's Emphasis On Developing the InfractorOther Economic Sectors Also Contributes to the Rise in Credit DemandKolkata Stocks. As Businesss Expand and New Projects Are Undertaken, The Need for Financing FROM The Bank Or groups.

Let ’s Analyze the Bank’ s Fundamentals Based On Growth, Profitability, Efficience, Solvency, and Valuation as we Continue Our Study on HDFC Bank Stock ANA ANA lysis.

Additively, it is a part of nifty 50, which is the indechmark index. TO KNow More About Nifty 50 Stock Read; All about Nifty50, Components OF NIFTY 50, and how to invest in it

Loans Serve as the Primary Revenue Generators for a Bank, Much Like Sales Functions for a ManuoFacturn Company. The Greater the Growth in Loans, The More Favorable IT is for the bank.

In Q3 FY24, Overal Loan Growth Came in AT 4.9% on A Sequential Basis to ₹ 24.46 LAKH CRORE. Over the Last Five Years, The Bank Has Reported ANNUNUA l Growth Rate (CAGR) of 19.4% in Credit Growth, Consistently OutpacingThe Industry Average.

In the Above Image, you can see loadth of hdfc bank has consistenting over the year.

In Q3 FY24, there was a year-on-year (yoy) increase of 27.7% and a quarter-on-quars (qoq) Rise of 1.9% in deposit grouph, reaching ₹ 22.1 Lakh Crore. Retail D EPOSITS WITNESED A Sequential Increase ofR 40,000 CRORE. Notbly, The Retail Segment Now Constitus A Significant 84% of the Total Deposit Base. Strated Robust MomenTum in DEPOSITS, with a Commentable 19% Compound Annual Growth Rate (CAGR) OVERThe Past 5 Years.

Nii is how much Money a Bank Makes from Loans and Investments after Subtraction What It Pays for Deposits and Other Debts vities. In Q3 FY24, HDFC Bank Posted Network Income (NII) Growth of41.9% yoy, white was largely driven by advances in grewth. In contrast to the previous quars, in Q2 FY24, Nii Growth Stood AT 30.3% yoy.

In Q3 FY24, Pat Incream by 39.1% yoy, whereas on a standalone basis, it increased by 33.5% yoy and 2.5% qoq; this was partly aidd by a loower tax rate e quars owing to some tax write-back.

As you see, there is a consistent rising pat of hdfc bank over the year shows the bank ’s rising profitability.

At this point of time, you all must have ben in a doubt. If the bank ’s finning, why did HDFC BANK Stock Fall So Badly?

Why did HDFC Bank Fall Post Q3 Results?

The reason behind this nim. A bank's network (nIM) is a key indicator of the property of its core Internet-earning activity. The Percentage Difference Between The Interest Earned on Loans and Investments and the Interest Paid on DepositsAnd Other Liabilities. A Higher Nim Suggests Better Profitability from Lending and Investing.

The Bank's Core Net Interest Margin (NIM) Experienced A Quarter-QUARTER Decline of 25 Basis Points, Dropping from 3.85% to 3.6%, ATTRIBUTED to the Incareased COST deposits. However, HDFC Bank has kept nims at healthy levels of over4% (AVERAGE LOAN BASIS) Mark in the Past 5 Years.

The DeCline of Nim for the Bank was Alream Expected after the Merger of HDFC LTD and HDFC Bank. So, Post-Merger, The Average Cost of BORROWING Increased, and HenceThere was a fall in nim for the hdfc bank.

Here is the overall trend of hdfc bank nim rate over the year.

Track the network (NIM) Ratio of hdfc bank in stockedge.

The Yield On Advances for A Bank is the Percentage of Income Generation from Interest on Relation to the Total Value of the Loans, Indicating the Profitability of T He Lending Activities. A Higher Yield on Advances Signifies Greater Earnings from the Loan Portfolio.

The Movement Towards Secured Lending and Better-Lated Corporates Have Impacts in FY22, But with the repricing of loans, yields are expected to pick up. He Yield on Advance for HDFC Bank Stood AT 10.10% for FY23.

HDFC Bank Stock Analysis is Not Complete Until's Efficience Ratios Are Properlyzed, you can analyze efficience ratios of HDFC BANK FROM Tockedge itset.

The Cost-TO-Income Ratio is a Tool to Measure The Efficience of Cost Management in Banks Which is Basically The Percentage Expenses in Relation Income.The bank.

NEVERTHESS, IT's Cruction to Recognize that the Cost-Income Ratio Can Fluctuate Significantly Due to the Impacts and Losses in The Treasury. Ile, HDFC Bank has observed a rise in the cost-found ratio attributed to network expansion andMerger-Related Expes. In the Third Quarter of Fy 24, hdfc bank disclosed a Cost-organio of 40.3%, Marking A Slight Decline of 10 BPS FROM The Presenting Quarter.

A Bank ’s Credit Cost Shows the Financial Impact of Credit Risk and is An Indicator of the Costs Related to Potential Loan Defaults and Non-Performing Assets.

The Credit Cost Ratio for HDFC Bank WAS 0.49%. This is Becaue The Bank ’s Credit Has Continued to be low that of its comparable peers, while is an indirect Castor of Improved Asset Quality Performance.

These are cracial indicators of a Bank's Asset Quality and Financial Health. IMe. So, The Lower the Ratios, The Better it is for a Bank.Q3 FY24, The Asset Quality Improved on A Sequential Basis as GNPA and NNPA RATIOS DECLINED by 8 BPS and 4 BPS, Respectively, to 1.26% and 0.31%.

The Credit DEPOSIT RATIO is the Proportion of a Bank ’s Loans Relates, INDICATING The EXTENT to Which the Bank Utilizes For Len Ding Activities. A Higher Credit Deposit Ratio Suggests A More Aggressive Lending Approach by the Bank and Vice Versa.

For HDFC Bank The Ratio is generally around 85% Levels However Post Merger This Ratio Has Been on A Higher Side Mainly on Account of AdDITION ok from hdfc LTD as compared to only ₹ 1.5 Lakh Crore Addition of DEPOSITSThen, then

HDFC Bank has a Great Liability with A Casa Ratio of 38% as of December 2023. ARDS The TERM SeGMENT OWING to Better Interest Rates. Also, DEPOSITS Coming inFrom HDFC LTD. WERE TERM DEPOSITS only.

HDFC Bank Has Always Maintained A Strong Capital Adequacy Ratio and Well Above Regulating Requirements. In Q3 FY24, HDFC Bank Crar Stands at 18.4%.Kolkata Investment

The Pe Ratio of HDFC Bank Stock on TTM Basis Stands at 18.42, Compared to the Industry AVERAGE PE OF 18.32. USSTRY AVERAGE.

We have a case Study Report Prepared by Our Team of Analysts. This Fundamental Report on HDFC Bank Stock PROVIDES You With A DetalySis of the Company As W Ell as how it stands among its competitors.

As you can see, hdfc bank stock has rating base on 6 parameters:

Based on the Above Parameters, HDFC Bank Stock Scott 24/30. Read the Case Study Report on HDFC Bank Stock.

CurrenTly Mr. Sashidhar Jagdishan is MD and CEO of the Bank and Has Taken Over The Reigns from Banking VeterA Puri.

Mr. Sashidhar Jagdishan Has Been with the Bank for 24 Years Now.

Coming to the shareholding pattern of hdfc bank stock, you can check it from the stockedge app itset.

HDFC BANK HAS SEEN Sharp Rise in ITS Stake from FII and DII Owing to Merger with HDFC LTD In Q2FY24 and Holding Steady in this quars quarter 24 as well.

HDFC Bank is Known to Maintain Strong Operation Metrics and has been had was important-specific-leveling Performance on this parameter. to Changes in Product Mix and Excess Liquidity. It is exten to improve over the long term. ManagementntExpects the Cost-TO-Income Ratio to DeCline Gradually to the MID-30s Level.

The Study On HDFC Bank Stock Analysis Reveals A Strong Foundation Marked By Consistent Growth in Loans and DEPOSITS. CK Price, The Long-Term Potential Remains Promising, Especially with the Bank ’s Prudent Management and Robust Financial Performance.

To find Other Investing Opportonity in the Stock Market, you can read our previous blog: Nestle India Stock Analysis: Hidden Potential for Investors

Happy Investing!Pune Wealth Management

Agra Investment