SECTOR: Bank - Private
₹ 863759.43 Cr.
₹ 64879.57 Cr.
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The Indian Banking sector is rising rapidly due to infrastructure spending, favorable government policy, rising disposable income and increasing consumerism and easier access to credit.
The banking industry is in boom with growing demand across India. But is it the right time to invest in banking stocks is the question to be asked? We can look into more details and dig a little deeper into the analysis of the stock.
Let’s look at how HDFC Bank is performing and if it is the right time to buy the stock of HDFC Bank with detailed analysis.
For Banking companies, The primary source of Income is interest earned on various loans given to individuals and corporates. HDFC Bank has earned Rs 120858.2265 Cr. revenue in the latest financial year. It has posted decent revenue growth of 14.6283553870746 % in last 3 Years.
In terms of advances, the bank reported 14.0015447138514 % YOY, rise . If you see 3 years advance growth, it stands at 19.8322920357033 %.
Currently the company has a CASA ratio of 46.1164338587714 %. It’s overall cost of liability stands at 3.80665393738357 %. Also, the total deposits from these accounts stood at Rs 1335060.2208 Cr.
The Bank has a healthy ROA track record. The ROA of HDFC Bank is at 1.89886484175882 %.
The Lender is efficiently managing it’s overall asset portfolio. The Gross NPA and Net NPA stood at 1.32 % and 0.4 % respectively as on the latest financial year.
One other important measure of banks’ financial health is provisioning coverage ratio. The YoY change in provision and contingencies is positive at 29.3225694867034 % which means it has increased from the previous year.
Non-Interest income or other incomes are very important for banks as it gives a regular source of income for bank with no additional risk. Other income of HDFC Bank surged and is currently at Rs 25204.8927 Cr.
The company has a Good Capital Adequacy Ratio of 18.79 .
The best metric which provides insights about bank’s valuation is P/B ratio. Currently HDFC Bank is trading at a P/B of 4.0726 . The historical average PB was 3.95661733011603.