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 R  

 Introduction
 Overview
 Net Interest Margin
 Capital Adequacy
 NPA
 CASA
 Valuation and View
 Investment Rationale
 Growth Strategy
 Conclusion
   
 Incorporated in 1994
 Second largest private sector bank
 1765 Branches across the country
  
 Retail loans grew strongly 31% YOY in FY10

 Driving overall loan growth 38% YOY in FY10

 Stellar performance on CASA deposits , grew 30

YOY in F10

 Superior NIM at 4.2% in FY10

 Growth of 8% in other income

 Asset quality best in industry

 DEPOSITS
 


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 4   4 
 CASA rate of 52%

 Strong growth outlook of 25-30% in Operating Profit

 Improving overall operating efficiency

 „ower credit cost led by best in class asset quality

 Re except EPS to be Rs. 85 in FY11 and Rs. 111 in FY12.

 In our view, EPS growth will be 30% CAGR over FY10-12 against
25% posted over FY05-10

 RE expect ROE to be 17% by FY11 and 19% by FY12.

 Re estimate BV of Rs 543 in FY11 and Rs 631 in FY12.

 Rhile key operating parameters best among peers valuation

factors in all positive , in our view.

 Re are 

 on HDFC Bank with price target of Rs. 

  )1 /  
 Gross bank credit of the banking industry is expected to grow
~20% in FY11
 HDFC Bank·s credit and deposits grew at Average 34.83% on
last three years and expected to grow at the same pace
 HDFC bank has well diversified portfolio which De-risk the
portfolio
 It has planned to open 150-200 new branches by the end of
Fiscal year FY-10
 Strong Asset policy and Investment portfolio
'1- , | )
 2,

 HDFC Bank·s mission is to be ´a world class Indian

Bankµ

 Benchmarking itself against international standards

and best practices in terms of product
offerings, technology, service levels, risk
management
 ),
 Increase its market share in India's expanding banking
and financial SBUs services industry

 „everage its technology platform and open scalable

systems to deliver more products

 Maintain high standards for asset quality

 Develop innovative products and services

 Focus on healthy earnings growth with low volatility

 ' ) 
 Performing good currently And showing better and
improved efficiency
 Need to be very careful with its future strategies as
banking sector is becoming more competitive
 It has to consistently perform well and improve its overall
performance shows in the analysis
 HDFC Bank has grown almost 25% every year and it is
expected to grow the same way as it has grown
 Its balance sheet size may not be like SBI or ICICI Bank
but it has generated wealth for the shareholders we
expect that it will continue to give good return to the
shareholders
 3