Key Points
HDFC Bank share prices tumbled 2.1% to Rs 1,656.9 per share in early trade on Monday as the lenders Q4FY23 PAT clocked in at Rs 120.5 billion, up 19.8% on-year but down 1.7% QoQ..
This was primarily on the back of healthy growth in net interest income (NII) and lower provisions..
The bank experienced a moderate credit growth of 17% on-year and 6% QoQ, largely due to a slowdown in retail credit growth during 4Q, which comprised 46% of the banks portfolio..
HDFC Bank is amongst the few banks to see deposit growth outpacing credit growth despite the intense competition for deposits as well as smaller banks offering competitive rates..
While the aggressive branch expansion exercise will keep Opex ratios elevated over the near to medium term, we expect it will set the stage for the banks next leg of growth..
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