HDFC Bank
Private sector lender with the largest market cap of Rs. 2.8 lakh crore announced Q1FY16 numbers which were very much in line with expectations. It reported a 6% QoQ growth in net interest income to Rs. 6.389 crore but net profit contracted by 4% sequentially to Rs. 2,696 crore.
While net interest margin for quarter ended 30th June 2015 was maintained at 4.3%, other income slipped 4% QoQ to Rs. 2.461 crore while provisions shot up by 26% sequentially to Rs. 728 crore. Asset quality was more-or-less maintained with gross NPAs of 0.95% (0.93% as of 31-3-15) and net NPAs of 0.27% (0.25% as of 31-3-15). With first quarter return on assets (RoA) of 0.5%, the annual run-rate is same maintained at FY15’s 2%.
At current BVPS of Rs. 259, share is trading at PBV multiple of 4.3x, which is off the historic highs of 5x, but near other private lenders like Kotak and Indusind Bank. HDFC Bank’s PE multiple, based on expected standalone EPS of Rs. 43.50 for FY16, is 25 times.