April 23, 2018 / 3:53 AM / 3 months ago

BUZZ-India's HDFC Bank gains after Q4 profit hits record

** HDFC Bank Ltd, the second-biggest Indian lender by assets, rises as much as 1.2 pct to 1,979 rupees ($29.91); stock among biggest drivers of gains on NSE index

** Q4 profit up 20.3 pct to a record 47.99 bln rupees ($724.92 mln), despite a rise in bad loans

** March-qtr gross non-performing loans as a percentage of total loans up to 1.3 pct from 1.29 pct in Dec-qtr, and compared with 1.05 pct a year earlier, co said on Saturday

** Slower corporate growth reflects preference for spreads over growth, “pleasantly surprised by continuous reduction in cost-to-asset ratio and higher fees,” Jefferies analysts write in a note, retaining ‘buy’ with PT of 2,360 rupees

** Any sharp rise in non-performing loans can be detrimental to earnings since co would need to scale back lending in some segments, resulting in pressure on net interest margin, lower fees and higher operating expenses - Kotak Institutional Equities analysts

** Forty-two of 49 brokerages rate the stock “buy” or higher, four “hold” and three “sell” or lower; their median PT is 2,288 rupees

$1 = 66.1575 Indian rupees

0 : 0
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