HDFC Bank Q2 Results will be announced tomorrowHDFC Bank, the country’s largest private lender will announce its July-September quarter results for the financial year 2021-22 tomorrow – Saturday (October 16). The bank reported better-than-expected credit growth of 15 per cent year-on-year was mainly driven by the re-acceleration in retail growth, according to leading brokerage and financial services company Emkay Global Financial Services in its recent report. HDFC Bank’s asset quality is likely to improve in the second quarter of thee current fiscal, according to the report. The bank’s deposit growth was steady at 14 per cent year-on-year and CASA deposit growth was stronger at 29 per cent year-on-year – which is a development likely seen across large banks, partially benefitting from the Reserve Bank of India’s directive to maintain current accounts with the main lender. The CASA ratio remains high at 47 per cent, added Emkay Global’s report and along with acceleration in retail loans, HDFC Bank’s is likely to report better margins sequentially in the upcoming quarterly results. The central bank lifted the sanction on HDFC Bank’s credit card business in August 2021. Since then, the bank has issued over 4 lakh credit cards after the bank was lifted.HDFC Bank’s stock has underperformed, according to Emkay Global, due to the cumulative effect of the management change, allegations around misconduct in auto business, pandemic-induced/asset quality disruption and the credit card business ban by the RBI.But, the-accelerating retail credit growth, lifting of the ban on the credit card business and expected moderation in NPA formation should bring relief, said Emkay Global in its report.Currently, Emkay Global has maintained a ‘Buy’ rating on the stock with a target price of Rs 1,850, given its proven track record in managing asset quality across cycles, strong capital profile and delivering superior return ratios.On Thursday, October 14, shares of HDFC Bank settled 2.86 per cent higher at Rs 1,685.90 on the BSE. Ahead of the earnings announcements, shares of HDFC Bank rallied on Thursday to touch a 52-week high of Rs 1,690.
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