Visit http://indiaer.blogspot.com/ for complete details HDFC Bank (HDFCB IN, CMP: `2,380; TP: `2,297; Outperform)
• We are factoring a 32% growth in advances due to strong traction seen in retail segments like auto, housing, and CVs. We expect personal loans and credit cards to grow at a slower pace due to the conscious strategy adopted by the bank.
• We have factored a 6bps drop in margins QoQ while remaining flattish YoY primarily to factor in recent deposit rate hikes.
• We expect 15% growth in Fee income due to pressure on income from sale of third-party products.
• Loan loss provision is expected to be much lower at ~0.9% vs 1.6% in 1QFY11 primarily due to the improving macro environment
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