HDFC Bank records 55.4% YoY growth in gross advances in Q4FY24
Bank’s advances inched up 1.6% from Rs 24.69 trillion at the end of December 31, 2023 (Q3 FY24).
Global brokerage firm Morgan Stanley shared an ‘overweight’ rating on the counter for the HDFC Bank with a target price of Rs 2,110 per share, implying an upside of 50 per cent from the last close.
Post this report, the shares of HDFC Bank gained nearly 1 per cent to Rs 1,424 per share on Friday.
Analysts at Morgan Stanley shared its bullish call, saying that accelerated market share gains would improve Current Account Savings Account (CASA) cross-selling in upcoming quarters.
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“The company gave details on the home loan business after the merger. The turnaround time has improved amid higher market share gains,” the brokerage firm noted.
The bullish call came after the HDFC management said that it recorded stable and healthy double-digit year-on-year (YoY) growth in its home loan business after merger till December 31, 2023.
Since the announcement of Q3FY24 results, its stock was down 15 per cent as investors were disappointed with margin strain, decadal fall in earnings per share (EPS), and sluggish deposits.
HDFC bank’s market share has grown by 18-20 per cent on incremental disbursals, and on a sequential basis, the bank has gained a leading position as it recorded a growth of 3.6 per cent which was the highest among its peers in home loans.
“HDFC Bank’s fundamental strategy has been to improve the turnaround time of processing at the front end. The post-merger turnaround time has been reduced to almost a third. This, coupled with the erstwhile HDFC strength of connecting with customers in person, is a potential game-changer in terms of both sales turnover and cross-selling,” the management said.
Also, HDFC has plans to launch home saver products in April and home refurbishment loans in the coming months, and these products are likely to strengthen the base of lucrative offers for home buyers.
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