A detailed presentation on stock analysis of HDFC Bank.

1. PRESENTATION
OF STOCK ANALYSIS
OF
HDFC BANK
By: Ayushi Kumari Singh
Enrollment no: AJU/201068
Course : BBA
Section : "B"

2. HISTORY OF HDFC BANK
HDFC Bank was incorporated in 1994 as a subsidiary of the Housing Development
Finance Corporation, with its registered office in Mumbai, Maharashtra, India. Its
first corporate office and a full-service branch at Sandoz House, Worli were
inaugurated by the then Union Finance Minister, Manmohan Singh.
As of 30 June 2022, the bank's distribution network was at 6,378 branches across
3,203 cities. It has installed 430,000 POS terminals and issued 23,570,000 debit
cards and 12 million credit cards in FY 2017.[15] It has a base of 1,52,511
permanent employees as of 30 June 2022.[16]

3. STOCK ANALYSIS OF HDFC BANK
Is HDFC Bank an attractive stock to invest in?
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.

4.  For Banking companies, The primary source of Income is interest
earned on various loans given to individuals and corporates. HDFC
Bank has earned Rs 1,27,753.12 Cr. revenue in the latest financial
year. It has posted decent revenue growth of 8.88 % in last 3 Years.
 In terms of advances, the bank reported 20.83 % YOY, rise . If you
see 3 years advance growth, it stands at 18.65 %.
 Currently the company has a CASA ratio of 48.17 %. It’s overall cost
of liability stands at 3.20 %. Also, the total deposits from these
accounts stood at Rs 15,59,217.44 Cr.

5.  The Bank has a healthy ROA track record. The ROA of HDFC Bank is at
1.94 %.
 The Lender is efficiently managing it’s overall asset portfolio. The
Gross NPA and Net NPA stood at 1.17 % and 0.32 % 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 negative at -4.08 % which means it has decreased
from the previous year.

6.  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 29,509.90 Cr.
 The company has a Good Capital Adequacy Ratio of 18.90 .
 The best metric which provides insights about bank’s valuation
is P/B ratio. Currently HDFC Bank is trading at a P/B of 3.62 .
The historical average PB was 3.81.Thehistorical average PB was
3.81.

7. Thank you