Tag: HDFC Bank

HDFC Bank launches its first virtual credit card with ₹500 annual fees: How to apply

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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HDFC Bank announced the launch of ‘PIXEL’, its first series of digital credit cards, on Tuesday (May 14). PIXEL marks HDFC Bank’s foray into an end-to-end mobile app-based customisable credit card range.

With this, users will have the freedom to personalise their credit card experience to fit their lifestyle. They will be able to prefer categories and merchants, colours and billing dates.

PIXEL will be offered in two variants: PIXEL Play and PIXEL Go.

While PIXEL Play will allow users to build their own cards with personalised benefits, PIXEL Go is designed for beginners seeking to build their credit scores.

These credit cards will come with a ₹500 membership fee plus taxes.

Key highlights of PIXEL include:

• Customisable cashback options for dining, entertainment, travel, fashion, electronics, and grocery purchases.
• Flexible repayment options, including low-cost EMIs.
• Instant digital onboarding and real-time tracking of transactions and rewards through the PayZapp mobile application.

Through PIXEL, the bank will give the power of customisation and choice to customers, by enabling them to select their preferred categories and favourite merchants/platforms such as Zomato, Myntra, BookMyShow, MakeMyTrip, Amazon and Flipkart, among others.

By doing so, customers can earn cashback on their spends from these merchants/platforms.

Both current and new customers can apply for PIXEL credit cards through the PayZapp mobile application of the bank.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Planning to buy a car this Akshaya Tritiya? Check which bank is offering lowest interest rate

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As Akshaya Tritiya, the auspicious occasion believed to bring prosperity and success, approaches on May 10 this year, the automotive industry gears up for a surge in sales. Traditionally associated with purchasing gold, this festival has also become synonymous with acquiring new assets, including vehicles like cars and bikes.

In anticipation of this festive period, banks generally come out with offers on car loans to attract consumers looking to make a big-ticket purchase.

Among the banks vying for attention with competitive interest rates are Union Bank of India, State Bank of India, and ICICI Bank.

According to data compiled by Bankbazaar.com, these banks are currently offering car loans of ₹10 lakh for a duration of four years at interest rates ranging from 8.70% to 9.10%.

Union Bank of India is currently offering interest rate of 8.70%, translating to an EMI of ₹24,565 on the same.

State Bank of India (SBI), the largest bank in India, follows closely with an interest rate of 8.75%, along with other major players like Punjab National Bank (PNB), Canara Bank, and Indian Bank, offering the same rate.

The EMI for loans from these banks amounts to ₹24,587.

Bank of India (BOI) offers an interest rate of 8.85%, resulting in an EMI of ₹24,632 for a four-year car loan of ₹10 lakh.

Meanwhile, Bank of Baroda (BOB), a government-owned bank, extends car loans at an interest rate of 8.90%, with an EMI of ₹24,655.

Moving towards the private sector, ICICI Bank offers car loans at a slightly higher interest rate of 9.10%, translating to an EMI of ₹24,745.

Axis Bank follows suit with an interest rate of 9.30%, resulting in an EMI of ₹24,835.

HDFC Bank, another major player, offers car loans at 9.40% interest, with an EMI of ₹24,881.

It’s important to note that the interest rates mentioned here are indicative and subject to change based on the banks’ terms and conditions.

The data was collected by CNBC Awaaz from the banks’ websites on April 23.

The calculation of the EMI is based on a loan amount of ₹10 lakh with a four-year tenure and assumes zero processing and other charges.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HDFC Bank reappoints Atanu Chakraborty as part-time chairman for 3 years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s largest private sector lender HDFC Bank Ltd on Friday (May 3) said the Reserve Bank of India (RBI) has approved the reappointment of Atanu Chakraborty as the part-time chairman of the bank for a period of three years effective from May 5, 2024, to May 4, 2027 (both days inclusive).

Also, pursuant to the approval by the RBI and based on the recommendation of the Nomination & Remuneration Committee, the board of directors of the bank, has approved the reappointment of Atanu Chakraborty as part-time chairman and independent director of the bank.

Chakraborty is currently a part-time chairman and independent director of HDFC Bank. He served the Government of India for 35 years as a member of the Indian Administrative Service (IAS) in the Gujarat cadre. He has mainly worked in areas of finance and economic policy, infrastructure, petroleum and natural gas.

Also Read: HDFC Bank plans to raise ₹60,000 crore via debt instruments

He held various posts such as secretary in the Ministry of Finance, Department of Economic Affairs (DEA), during FY20.

As secretary (DEA), he coordinated economic policy-making for all ministries or departments and managed the entire process of formulation of budget making for the Union of India, including its passage in Parliament. He was responsible for fiscal management policies, policies for public debt management and the development and management of financial markets.

Chakraborty is not related to any other directors or key managerial personnel of the bank. He is not debarred from holding the office of a director by virtue of any SEBI order or any other such authority, the bank added.

Also Read: HDFC Bank Q4 results: Net profit remains flat, lender announces dividend of ₹19.5 per share

Shares of HDFC Bank Ltd ended at ₹1,518.65, down by ₹14.35, or 0.94%, on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HDFC Bank’s net banking down, lender says ‘actively working to resolve’ issues

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

These two brokerages raise target price on HDFC Bank: Should you buy now?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Brokerage firms Jefferies and Nomura have raised their target price on HDFC Bank after the lender reported results for the fourth quarter of FY24 on Saturday (April 20). Despite the bank’s numbers falling below estimates, the brokerage houses are optimistic about its prospects.

HDFC Bank reported a 0.9% sequential increase in net profit, totalling ₹16,511.9 crore for the fourth quarter of FY24.

Year-on-year numbers were not comparable due to the bank’s merger with Housing Development Finance Corporation (HDFC) on July 1, 2023.

Here’s a table summarising the target prices and recommendations of all brokerage firms regarding HDFC Bank:

Jefferies has issued a recommendation to ‘buy’ HDFC Bank shares, with an increased target price of ₹1,880 per share.

The firm believes that the bank’s pre-provision operating profit (PPOP) was in line with estimates.

Jefferies also noted a slight increase in net interest margins (NIMs), despite a rise in the liquidity coverage ratio. Additionally, it highlighted strong deposit growth of 17%.

Nomura, on the other hand, adjusted its stance on HDFC Bank to ‘neutral’ and raised the target price to ₹1,660 per share from the previous ₹1,625 per share.

Nomura noted a gradual adjustment phase currently underway.

The firm now anticipates a loan growth of 12-13%, down from the earlier projection of 15%, with deposits expected to grow at a 17% compound annual growth rate (CAGR) over the fiscal years 2024 to 2026.

Nomura estimates a return on equity (RoE) of approximately 14-15% for the financial years 2025 to 2026.

Notably, the bank’s loan-to-deposit ratio saw a decrease to 104% from 110% in Q3FY24, with deposits outpacing loans significantly in a seasonally strong Q4.

Management has stated its intention to prioritise profitability over growth.

Nomura anticipates a gradual improvement in the trajectory of net interest margins (NIMs) and has adjusted the estimates downward for the financial years 2025 to 2026 earnings per share (EPS) by nearly 3% due to softer loan growth.

Meanwhile, brokerages such as ICICI Securities and Motilal Oswal are also bullish on HDFC Bank.

ICICI Securities has upgraded HDFC Bank to ‘buy’ from ‘add’, setting a target of ₹1,850 per share.

The firm highlighted the bank’s strong reported and adjusted Return on Assets (ROA) for Q4.

Additionally, it anticipates a gradual re-rating of the bank’s stock based on sustained deposit growth, supported by a significant reduction in borrowings, down 10% QoQ.

Moreover, the quarter-on-quarter rise in Net Interest Margin (NIM) and Liquidity Coverage Ratio (LCR) further strengthened the positive outlook.

Despite these optimistic indicators, ICICI Securities has revised downward their estimate for loan growth to 13%, citing potential challenges in this area.

This adjustment is mirrored in the lowered earnings per share (EPS) estimates for the financial years 2025 and 2026.

However, the firm still expects HDFC Bank to maintain a healthy RoA of nearly 1.7% for FY25/26, with a respectable Return on Equity (RoE) of 14%-15%.

Motilal Oswal also shares a bullish perspective on HDFC Bank, issuing a ‘buy’ call with a target price of ₹1,950 per share.

The firm found the bank’s Q4 core performance to be in line with expectations, with an improvement in margins compared to the previous quarter.

The prudent deployment of one-off gains to boost floating provisions has contributed positively to the bank’s financial health, it said.

Additionally, Motilal Oswal anticipates growth rates for HDFC Bank over the financial years 2024 to 2026, estimating a Compound Annual Growth Rate (CAGR) of 13.5% to 18% in loans and deposits.

This growth trajectory is expected to translate into a 16% CAGR in earnings, resulting in a RoA/RoE of 1.9%/15.5% by FY26.

On the other hand, Morgan Stanley echoed this sentiment, maintaining an ‘overweight’ call with a target of ₹1,900 per share. The firm emphasised strong bounce-backs in the liquidity coverage ratio and improved margins.

Despite these calls, the share of HDFC Bank opened higher on Monday (April 22) but turned red soon. It fell nearly 1% on BSE to ₹1516.05 apiece.

Meanwhile, the shares of HDFC Bank opened higher on Monday (April 22) but soon turned red, falling nearly 1% on BSE to ₹1516.05 apiece.

At the time of writing this report, the stock was down 0.97% at ₹1516.40 on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HDFC Bank plans to raise ₹60,000 crore via debt instruments

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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HDFC Bank on Saturday (April 20) announced plans to raise ₹60,000 crore through various debt instruments. The decision was finalised during the Board of Directors meeting, where key approvals were granted for the annual renewal of issuance.

These instruments include long-term bonds aimed at financing infrastructure and affordable housing projects, perpetual debt instruments forming part of Additional Tier I capital, and Tier II Capital Bonds, the lender said in a regultory filing.

This fundraising endeavor is slated to unfold over the next twelve months and will be facilitated through private placement mode.

However, this will require approval of the shareholders of HDFC Bank and compliance with any regulatory prerequisites.

In a separate announcement, HDFC Bank reported 0.9% sequential increase in net profit, totaling ₹16,511.9 crore. However, this figure fell short of CNBC-TV18 poll, which had anticipated a profit of ₹18,361.5 crore.

Year-on-year numbers are not comparable due to the bank’s merger with Housing Development Finance Corporation (HDFC) on July 1, 2023.

The bank further announced that its board of directors recommended a dividend of ₹19.5 per equity share of ₹1 for the year ended March 31, 2024.

Shares of HDFC Bank closed trading on April 19 at ₹1531.30, reflecting a 2.46% increase on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HDFC Bank Q4 results: Net profit remains flat, lender announces dividend of ₹19.5 per share

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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HDFC Bank, in its financial report for the fourth quarter of the financial year, announced 0.9% sequential increase in net profit, totaling ₹16,511.9 crore. However, this figure fell short of CNBC-TV18 poll, which had anticipated a profit of ₹18,361.5 crore.

The bank’s provisions soared to ₹13,511.6 crore for Q4, compared to ₹4,216.6 crore in the previous quarter.

Year-on-year numbers are not comparable due to the bank’s merger with Housing Development Finance Corporation (HDFC) on July 1, 2023.

Despite the rise in provisions, the bank’s net interest income (NII) grew by 2.1% over the previous quarter, reaching ₹29,076.9 crore.

Nonetheless, this figure fell short of the expected ₹28,876.4 crore, as per CNBC-TV18’s poll.

Asset quality exhibited marginal changes, with gross non-performing assets (NPA) decreasing slightly to 1.24% from 1.26% in the previous quarter.

Similarly, net NPA increased marginally to 0.33% from 0.31% in the previous quarter.

Gross NPA amounted to ₹31,173.3 crore, while net NPA stood at ₹8,091.7 crore.

The bank’s net revenue surged to ₹47,240 crore, inclusive of transaction gains of ₹7,340 crore from the stake sale in subsidiary HDFC Credila Financial Services during the quarter.

The bank further announced that its board of directors recommended a dividend of ₹19.5 per equity share of ₹1 for the year ended March 31, 2024.

Shares of HDFC Bank closed trading on April 19 at ₹1531.30, reflecting a 2.46% increase on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HDFC Bank Q4 Preview: Net profit expected to rise 12%, net interest margin may remain stable

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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HDFC Bank’s net profit is expected to rise 12.1% to ₹18,361.5 crore for the fourth quarter of FY24, according to CNBC-TV18 polls. The net interest income (NII) is estimated to be ₹28,876.4 crore for the fourth quarter of FY24.

Maintaining its operational efficiency, HDFC Bank is expected to sustain a stable net interest margin (NIM) at 3.4%, aligning with Nomura’s analysis.

Further, the quarter may see an additional boost in income stemming from a stake sale in HDFC Credila, potentially augmenting the bank’s revenue streams.

Despite the optimistic outlook, analysts are keeping a close eye on asset quality, with forecasts indicating slippages of ₹7,500 crore.

However, credit costs are projected to either stabilise or decrease compared to the previous quarter.

In the preceding quarter, HDFC Bank saw a 2.5% sequential increase in net profit, primarily driven by higher provisions.

Net profit for the October-December period stood at ₹16,373 crore, up from ₹15,976 crore in the previous quarter.

It’s important to note that year-on-year figures were not comparable at that time as HDFC Bank had concluded the merger with Housing Development Finance Corp in July 2023.

ALSO READ | Indian banks may report smaller margins and fewer bad loans

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indian banks may report smaller margins and fewer bad loans

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Banks are expected to witness a continued decrease in net interest margins in the January-March 2024 quarter due to tight liquidity and intense competition for deposits.

Below are the key expectations for the quarter.

As of March 22, the loan growth was around 20.1% year-on-year and around 3% quarter-on-quarter.

Low-cost deposit ratio has been declining for the last few quarters, an the downward trend may continue. The current account savings account (CASA) ratio is also likely to continue to decline in the fourth quarter for many players.

There could also be a slowdown in the operating profit growth rate, largely due to a decline in net interest margin and also because of lower trading gains.

Credit costs remain on the lower side for the sector, thereby aiding the bottom line and the return ratios.

However, earnings will be under pressure and there may be a decline for some lenders.

The banking sector is witnessing the best asset quality in over a decade and it will continue to remain in a sweet spot.

Slippages will be on downward trend. However, not too many upgrades are likely.

Key highlights will be the deposit mobilisation as it has lagged loan growth over the last few quarters. Hence, lenders’ outlook, with respect to focusing on deposit growth or slowing down loan growth, will be watched closely.

Kotak Securities estimates for some leading banks:

Brokerage firm Kotak Securities expects State Bank of India to post a net interest income (NII) decline of 0.5% year-on-year and up about 1% on a sequential basis.

Net profit is expected at ₹13,150 crore, down 21% year-on-year and up about 43.6% sequentially.

For Bank of Baroda, Kotak estimates NII to decline 2.2% year-on-year but up about 1.50% quarter-on-quarter.

However, they expect the profit to decline 7.2% year-on-year and about 3.2% sequentially.

For HDFC Bank, where the estimates are only sequential because of the merger of HDFC, Kotak expects NII increase of 3.50% and net profit rise of 22.3% largely aided by the other income.

For ICICI Bank, Kotak expects NII to be up about 3.7% year-on-year but a decline of 1.9% quarter-on-quarter.

Net profit is estimated to be up 4.6% year-on-year but down more than 7% quarter-on-quarter.

For Axis Bank, Kotak securities estimates NII to be up about 8.9% year-on-year and about 2% sequentially.

Net profit of Axis Bank is expected to decline by 1.7% year-on-year but rise 0.7% sequentially.

Speaking to CNBC-TV18, Nitin Aggarwal, Head of BFSI Research, Institutional Equity at Motilal Oswal Financial Services, believes that overall numbers are anticipated to moderate, a process ongoing for over a year.

According to Aggarwal, this quarter there is an expectation of a 6% earnings growth, excluding HDFC Bank for private banks, and approximately 12-13% for PSUs.

“In banking, we think the steadiness will continue in the numbers. We like ICICI Bank, where we are looking at a 16-17% year-on-year earnings growth, and SBI where we are projecting a ₹16,000 crore profit after tax (PAT). From southern private banks, we like IndusInd Bank, where we are expecting stable margins,” he said.

Saurabh Kumar, Senior Analyst for India Banking and Financial Research at JPMorgan, anticipates an increase in credit costs, particularly in the unsecured business.

Kumar will keenly watch the guidance on the current financial year’s loan and balance sheet growth.

Kumar noted that banks are likely to be valued based on growth prospects, as Indian banks’ credit quality remains among the strongest in the Asia Pacific region. Therefore, investors will focus heavily on growth opportunities.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow