After muted Q3 results, HDFC Bank stock may have bottomed out

However, HDFC Bank seems to have bottomed out in mid-February when it hit a 52-week low of Rs 1,363

HDFC Bank had a muted October-December quarter (Q3) with the acceptable pre-provision operating profit (PPOP) and profit after tax (PAT).

The deposit growth, however, was modest at 1.9 per cent quarter-on-quarter (Q-o-Q). The margin remained flat at 3.4 per cent despite a rise in the credit-deposit (CD) ratio.

The NII (net interest income) growth came in at 2 per cent, slightly lower than consensus but healthy other income boosted by treasury gains compensated.

The gross non-performing asset (NPA) ratio improved 8 bps Q-o-Q to 1.3 per cent, while the provision coverage ratio or PCR improved to 75 per cent.

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