Commenting on the same, Amar Ambani, Head of Research, IIFL said, “While HDFC Bank’s operating performance in Q2 FY16 was in-line, the sharp acceleration in loan growth to 28% yoy came as a pleasant surprise. Further encouraging was strong 10% qoq expansion in the retail loan book, which supports our belief that portfolio mix would move favorably in the coming quarters supporting the NIM. From FY17, we see the bank reverting to 25-30% pa earnings growth trajectory and thus valuation would continue to stay at a premium.”
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