India's Largest Bank by Market Capitalisation the bellwether HDFC Bank has reported better than expected result for the quarter ended March 2020.
Net Profit is up by 17% to the levels of Rs. 6,927/- Crores whereas for the complete year 2019 -2020 the total profit is at mind boggling 26,257/- Crores which itself is higher than 24% for the previous financial year 2019 which was 21,078 Crores.
The Bank informed that there will not be any divided decleration as per RBI directive due to Covid 19 pandemic situation.
The total deposit of the bank stands at 11.47 Lakh Crores where as the loans outstanding at 9.93 Lakh Crores.
The NPA declined to the levels of 1.26% from the previous year figure of 1.36%.
The result should be seen as an eye opener for the Public Sector Banks of our country which are running in losses and draining out the tax payers money. It should be noted that the Market Capitalisation of HDFC Banks stands much higher than that of all the Public sector banks market cap taken together.
The shares of HDFC Bank closed on Friday 17th April 2020 at Rs 910 up by 3% from the previous day close.
What should investors do now with HDFC Bank shares ?
Our team recommends a buy in the stock of HDFC Ban with the target of 1200 by June end and our year end targets stands at 1500/- The non decleration of dividend will result in price increase of the stock as after the removal of ban by Reserve Bank of India they should be giving very high divided in the year 2021 may be around Rs 50 per share according to our estimates.
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