Analysis of Financial Track RecordData adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
|Net Profit/Total Funds (%)||0||0||1.19||1.39||1.42||1.42||1.49||1.6||1.7||1.84|
|Net NPA to Net Advances (%)||0||0||0.44||0.43||0.47||0.63||0.31||0.19||0.18||0.2|
|Capital Adequacy Ratio||-||-||-||-||-||-||-||-||-||16.8%|
CAGR Colour Code Guide
|9 yrs||5 yrs||3 yrs||1 yr|
|Net Interest Income||NA||25.3%||24.2%||23.5%|
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
Book Value per Share
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
|RATIOS \ YEARS||Mar'04||Mar'05||Mar'06||Mar'07||Mar'08||Mar'09||Mar'10||Mar'11||Mar'12||Mar'13|
|Interest Earned / Total Income||0||0||79.48||80.82||80.98||82.6||79.41||81.38||82.47||83.41|
|Return on Equity (%)||0||0||16.44||19.38||17.69||17.18||16.71||17.02||18.9||20.64|
on 5 important parameters. These parameters are colour coded as Green (Very Good),
Orange (Somewhat Good) and Red (Not Good)
HDFC Bank increased its net interest income by 17.72% in FY12 on the stand-alone basis. NII rose from Rs.1817.9 Cr. in FY04 to Rs. 22,663.7 Cr. in FY13. Its CASA, the source of low cost funds, was 47.4% as on March 31, 2013; which is the highest in the Indian banking Industry. The high interest income and the low cost because of high CASA helped the Bank maintain an average net interest margin at a very high level of 4.5% for FY13. This higher NIM is due to the reclassification of ... Read more
HDFC Bank increased its net interest income by 17.72% in FY12 on the stand-alone basis. NII rose from Rs.1817.9 Cr. in FY04 to Rs. 22,663.7 Cr. in FY13. Its CASA, the source of low cost funds, was 47.4% as on March 31, 2013; which is the highest in the Indian banking Industry. The high interest income and the low cost because of high CASA helped the Bank maintain an average net interest margin at a very high level of 4.5% for FY13. This higher NIM is due to the reclassification of retail cost of acquisition which was earlier set off against the interest income. Now they are shown as an operating expense. Had the reclassification not taken place, NIM would have been 4.3%. The Bank has increased its book value per share by 17.06% in FY12. In the last 10 years, it rose from Rs. 18.9 in FY04 to Rs. 127.52 in FY12, on a stand-alone basis.
HDFC Bank managed to maintaina ten-year-average ROA (Return on assets) at 1.77% in FY12, which is significantly higher than the benchmark of 1.25%. The non-performing assets to net advances ratio of the bank have been continuously below 0.5%, which shows its asset quality is very good. The ratio was 0.18% FY13. Currently, its capital adequacy ratio is at 16.8%; well above the RBI guideline of 9%, which will help the Bank grow its operation comfortably. Asset quality was healthy with gross non-performing assets (NPAs) at 0.97% of gross advances as on March 31, 2013. Net non-performing assets remained at 0.2% of net advances as on March 31, 2013.
In nut shell, we can say HDFC Bank has shown a tremendous performance in the past. Hence, we conclude that the 10 YEAR X-RAY of the HDFC Bank is Green (Very Good).Show less