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com use and downloaded at 04/22/2024 12:56 PM

BUY HDFC Bank

Deposit/NIM management to take precedence over credit growth
BFSI - Banks  Result Update  April 22, 2024 TARGET PRICE (Rs): 2,000

After the Q3 miss, HDFCB largely ticked all the boxes in Q4 – delivering better- Target Price – 12M Mar-25
than-expected deposit growth (over Rs1.7trn QoQ), positively surprising on the Change in TP (%) (4.8)
margin front (over 3bps QoQ) to 3.63% despite the sharp fall in LDR to 104% Current Reco. BUY
and accelerated branch expansion. HDFCB utilized HDFC Credila’s stake sale
Previous Reco. BUY
gains of Rs73bn and tax reversal due to favorable court order to shore-up
contingent provision buffer (over Rs109bn QoQ) to 1.1% of loans. However, Upside/(Downside) (%) 33.8
higher staff cost due to ex-gratia provision led to a 3% PAT miss at Rs165bn. CMP (19-Apr-24) (Rs) 1,531.3
Going forward, as per management, ramping up retail deposits and margin
management amid potential pressure from lower incremental LDR/inorganic
PSL build-up (from Oct-25) to meet sub-targets will take precedence over credit Stock Data Ticker
growth. Factoring in slower growth, we have trimmed our earnings estimates 52-week High (Rs) 1,758
for FY25-26E by ~7%. However, we retain BUY with a revised TP of Rs2,000 1,363
52-week Low (Rs)
(earlier Rs2,100), valuing the standalone bank at 2.5x Mar-26E (from 2.7x Dec-
Shares outstanding (mn) 7,596.9
25E), partly offset by better subs. valuation (Rs250/sh vs. earlier Rs190/sh).
Market-cap (Rs bn) 11,355
HDFC Bank: Financial Snapshot (Consolidated) Market-cap (USD mn) 1,35,920
Y/E March (Rs mn) FY22 FY23 FY24 FY25E FY26E Net-debt, FY25E (Rs mn) NA

Net profit 3,69,614 4,41,087 6,08,123 7,01,782 8,26,630 ADTV-3M (mn shares) 27

Loan growth (%) 20.8 16.9 55.2 11.5 13.0 ADTV-3M (Rs mn) 39,696.3

NII growth (%) 11.0 20.6 25.0 15.4 15.5 ADTV-3M (USD mn) 475.2
NIM (%) 3.9 4.1 3.4 3.5 3.6 Free float (%) 99.0

PPOP growth (%) 11.7 9.9 34.1 9.3 19.5 Nifty-50 21,996

Adj. EPS (Rs) 66.7 79.1 80.0 92.4 108.8 INR/USD 83.5

Adj. EPS growth (%) 18.1 18.6 1.3 15.4 17.8 Shareholding, Mar-24
Adj. BV (INR) 428.3 497.8 551.5 621.4 704.4 Promoters (%) -
Adj. BVPS growth FPIs/MFs (%)
17.5 16.2 10.8 12.7 13.4 41.4/29.1
(%)
RoA (%) 1.9 1.9 1.8 1.8 1.9
RoE (%) 16.7 17.0 14.2 15.0 15.7 Price Performance
P/E (x) 20.5 17.3 16.0 13.9 11.8
(%) 1M 3M 12M
P/ABV (x) 3.2 2.7 2.3 2.1 1.8
Absolute 3.4 0.6 (9.9)
Source: Company, Emkay Research Rel. to Nifty 3.5 (1.4) (27.5)

Retail deposit mobilization, margin management to take precedence over credit

growth 1-Year share price trend (Rs)
HDFCB reported subdued credit growth at 12.5%YoY/1.6% QoQ on a merged basis as 1750 10
Rs %
the bank continues to run down eHDFCL’s corporate book. However, the bank accelerated
deposit growth QoQ – Rs1.66trn, including retail deposits at ~Rs1.3trn and the balance 1670 0

being bulk deposits, which in turn led to a sharp reduction in LDR by 600bps QoQ to 1590 -10
104%, thereby easing regulatory concerns. The bank also reported an improvement in
LCR to 115%. Despite the sharp fall in LDR, the bank managed to report a slight uptick 1510 -20

in NIMs (+3bps QoQ) to 3.63%, much to our and street’s surprise. Going forward, 1430 -30
management would avoid giving any tangible guidance. However, management re-
emphasized its stance on retail deposit mobilization and managing margins via a better 1350 -40
Apr-23 Jun-23Aug-23 Oct-23Dec-23Feb-24 Apr-24
portfolio mix, replacing eHDFCL’s high-cost borrowings and need be a rate hike, amid
HDFCB IN Equity (LHS) Re l to Nifty (RHS)
rising pressure from lower incremental LDR and inorganic PSL build-up to meet sub-
targets as the RBI leeway ends in Sep-25.

One-off gains consumed to build a strong contingent provision buffer and, thus,
balance-sheet resiliency
HDFCB’s headline asset quality continues to improve with the GNPA ratio largely stable
at 1.2%, but the bank has shored-up contingent provision buffers (over Rs109bn QoQ)
to 1.1% of loans utilizing one-off gains from HDFC Credila’s stake sale gains and lower Anand Dama
tax incidence due to a favorable court case. This should improve HDFCB’s balance-sheet [email protected]
resiliency and tier-II capital ratio, while management indicates that it has no plans to +91 22 6624 2480
utilize these provisions except for unexpected events. In addition to contingent/floating
Kunaal N
provision buffer, the bank maintains a healthy specific PCR at 74% and, thus, should
[email protected]
help the bank maintain incremental LLP at 0.5-0.6%, amid rising margin pressure. +91 22 6612 1275

Retain BUY with a lower TP of Rs2000/share Marazbaan Dastur

We have cut our earnings estimates for FY25-26E by ~7%, factoring in slower credit [email protected]
growth and, thus, slightly lower RoA/RoE at 1.8-1.9%/15-16% over FY25-26E. However, +91 22 6612 1281
we retain BUY with a downward revised TP of Rs2,000 (earlier Rs2,100), valuing the
standalone bank at 2.5x its Mar-26E (from 2.7x Dec-25E), partly offset by better
subsidiary valuation (Rs250/sh vs. earlier Rs190/sh), including mainly NBFC subsidiary
– HDB Financial Services (to come for the IPO in FY25) and HDFC AMC.

This report is intended for [email protected] use and downloaded at 04/22/2024 12:56 PM
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>Please refer to the last page of the report on Restrictions Refer to Important Disclosures at the end of this report
on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or
Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
HDFC Bank (HDFCB IN) India Equity Research | Result Update

Story in Charts
Exhibit 1: Credit growth slows down; however, deposits growth Exhibit 2: The bank reported a slight improvement in NIM QoQ
remains robust

Loan Growth (YoY) Deposit Growth (YoY) NIMs (%)

25% 5.0
4.2 4.2 4.3 4.3 4.3
4.5 4.0
20% 4.0 3.4 3.4 3.4
17% 3.5
15% 3.0
12%
2.5
10% 2.0
1.5
5% 1.0
0.5
0% 0.0

4QFY22

1QFY23

2QFY23

3QFY23

4QFY23

1QFY24

2QFY24

3QFY24

4QFY24
1QFY24
2QFY22

3QFY22

4QFY22

1QFY23

2QFY23

3QFY23

4QFY23

2QFY24

3QFY24

4QFY24
Source: Company, Emkay Research Source: Company, Emkay Research

Note: Figures from Q2FY24 represent NIM on a merged basis and are, thus,
not comparable with the historical trend

Exhibit 3: NPA ratio also moderated after a jump in Q2 due to the Exhibit 4: The bank continued to register a healthy RoA in Q4
recognition of stress in eHDFCL’s portfolio

GNPA Ratio (%) NNPA Ratio (%) PCR (%) RoA (%)

2.5

2.0
1.6 80.0
2.0

1.9

1.9
1.9
1.3

1.2

1.9
1.8
1.8
1.2

1.7
2.0
1.2
0.9

0.9
0.9

0.8
0.8

1.5
0.8 70.0
1.0
0.3
0.3
0.3

0.2

0.2
0.2

0.2
0.2

0.4 0.5

0.0
0.0 60.0
4QFY22

1QFY23

2QFY23

3QFY23

4QFY23

1QFY24

2QFY24

3QFY24

4QFY24
4QFY22

4QFY24
1QFY23

2QFY23

3QFY23

4QFY23

1QFY24

3QFY24

Source: Company, Emkay Research Source: Emkay Research

Exhibit 5: HDFCB trades at 2.5x one-year forward ABV

P/AdjBVPS (x) Mean +2 SD -2 SD

5.00

4.00

3.00
(x)

2.00

1.00

-
Apr/15
Apr/08

Apr/09

Apr/10

Apr/11

Apr/12

Apr/13

Apr/14

Apr/16

Apr/17

Apr/18

Apr/19

Apr/20

Apr/21

Apr/22

Apr/23

Apr/24

Source: Bloomberg, Emkay Research

Exhibit 6: Actuals vs. Estimates (Q4FY24)

(Rs mn) Actuals Estimates Variation Comments

Emkay Consensus Emkay Consensus
Net income 4,72,431 4,62,994 4,63,592 2% 2% High other income led to a beat
PPOP 2,92,742 2,97,837 2,97,101 -2% -1% Higher staff cost due to ex gratia provision led to a miss
PAT 1,65,119 1,70,586 1,70,493 -3% -3% PPOP miss coupled with higher provisions led to PAT miss

Source: Company, Emkay Research

This report is intended for [email protected] use and downloaded at 04/22/2024 12:56 PM
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>.Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research
analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
April 22, 2024 |2
HDFC Bank (HDFCB IN) India Equity Research | Result Update

Exhibit 7: Key assumptions

FY23A FY24E FY25E FY26E

Loan Growth (%) 16.9 55.2 11.5 13.0
Deposit Growth (%) 20.8 26.4 22.4 19.9
NIM (%) 4.1 3.4 3.5 3.6
GNPA (%) 1.1 1.2 1.2 1.2
Credit Cost (%) 0.8 0.6 0.5 0.5

Source: Emkay Research

Exhibit 8: Key ratios and trend

(Rs bn) 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24
Loans* 13,688 13,951 14,799 15,068 16,006 16,157 23,312 24,461 24,849
YoY growth (%) 13,688 13,951 14,799 15,068 16,006 16,157 23,312 24,461 24,849
QoQ growth (%) 20.8 21.6 23.4 19.5 16.9 15.8 57.5 62.3 55.2
Composition (%) 8.6 1.9 6.1 1.8 6.2 0.9 44.3 4.9 1.6
- Corporate
- Retail 52.1 64.1 65.2 63.1 63.9 63.6 48.5 48.5 47.7
- Overseas 44.8 32.4 31.7 34.1 33.5 33.8 51.5 49.8 50.8
QoQ growth (%) 3.1 3.5 3.1 2.8 2.6 2.6 0.0 1.7 1.5
Liability Profile and Margins
Deposits* 15,592 16,048 16,734 17,332 18,834 19,131 21,729 22,140 23,798
YoY growth (%) 16.8 19.2 19.0 19.9 20.8 19.2 29.8 27.7 26.4
QoQ growth (%) 7.8 2.9 4.3 3.6 8.7 1.6 13.6 1.9 7.5
CA 2393 2206 2300 2277 2735 2524 2477 2558 3100
SA 5117 5141 5297 5352 5625 5606 5700 5799 5987
CASA (%) 48.2 45.8 45.4 44.0 44.4 42.5 37.6 37.7 38.2
CA (%) 15.3 13.7 13.7 13.1 14.5 13.2 11.4 11.6 13.0
SA (%) 32.8 32.0 31.7 30.9 29.9 29.3 26.2 26.2 25.2
NIM (%) 4.2 4.2 4.3 4.3 4.3 4.3 3.6 3.6 3.6
Branches (nos) 6,342 6,378 6,499 7,183 7,821 7,860 7,945 8,091 8,738
Asset Quality and Capital Adequacy (%)
GNPA 1.17 0.91 0.88 0.89 0.81 0.85 1.34 1.26 1.24
NNPA 0.32 0.25 0.23 0.24 0.20 0.21 0.35 0.31 0.33
PCR 72.6 72.7 73.5 73.0 75.6 75.1 74.2 75.0 73.4
CAR 18.9 18.1 18.0 19.4 19.3 18.9 19.5 18.4 18.8
Tier I 17.9 17.1 17.1 17.2 17.1 16.9 17.8 16.8 16.8
ROE Decomposition (%)
NII 3.8 3.7 3.6 3.8 3.7 3.3 3.3 3.3 3.3
Other Income (Ex Treasury) 1.5 1.5 1.3 1.4 1.4 1.2 1.2 1.1 1.2
Opex 2.0 2.0 1.9 2.1 2.1 2.0 1.8 1.8 2.0
PPOP 3.3 2.9 3.0 3.1 2.9 2.6 2.7 2.7 3.3
Provisioning Cost 0.7 0.6 0.6 0.5 0.4 0.4 0.3 0.5 1.5
PBT 2.6 2.3 2.4 2.7 2.5 2.2 2.4 2.2 1.8
ROA 2.0 1.8 1.8 2.0 1.9 1.7 1.9 1.9 1.9
Leverage (x) 8.3 8.3 9.2 9.1 9.1 9.7 8.2 8.2 8.1
ROE 16.8 14.7 16.7 18.3 17.2 16.3 15.8 15.5 15.0

Source: Company, Emkay Research; *Represents merged numbers of HDFCB and eHDFCL from Q2FY24

This report is intended for [email protected] use and downloaded at 04/22/2024 12:56 PM
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>.Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research
analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
April 22, 2024 |3
HDFC Bank (HDFCB IN) India Equity Research | Result Update

HDFC Bank: Consolidated Financials and Valuations

Profit and Loss Balance Sheet

Y/E March (Rs mn) FY22 FY23 FY24 FY25E FY26E Y/E Mar (Rs mn) FY22 FY23 FY24 FY25E FY26E
Interest Income 12,77,531 16,15,856 25,83,406 29,72,687 33,03,073 Share capital 5,546 5,580 7,597 7,597 7,597
Interest Expense 5,57,435 7,47,433 14,98,081 17,20,455 18,56,131 Reserves & surplus 23,95,384 27,96,410 43,94,861 49,37,109 55,81,413
Net interest income 7,20,096 8,68,422 10,85,325 12,52,231 14,46,942 Net worth 24,00,929 28,01,990 44,02,458 49,44,706 55,89,010
NII growth (%) 11.0 20.6 25.0 15.4 15.5 Deposits 1,55,92,174 1,88,33,946 2,37,97,863 2,91,32,846 3,49,30,011
Other income 2,95,099 3,12,148 4,92,410 5,04,361 6,16,554 Borrowings 18,48,172 23,17,656 66,21,531 56,77,801 46,08,241
Total Income 10,15,195 11,80,571 15,77,735 17,56,592 20,63,495 Interest bearing liab. 1,74,40,346 2,11,51,602 3,04,19,394 3,48,10,647 3,95,38,252

Operating expenses 3,74,422 4,76,521 6,33,860 7,25,083 8,30,633 Other liabilities & prov. 8,44,075 7,07,222 13,54,379 8,38,699 9,59,531
PPOP 6,40,773 7,04,050 9,43,874 10,31,509 12,32,862 Total liabilities & equity 2,06,85,351 2,46,60,815 3,61,76,231 4,05,94,051 4,60,86,793

PPOP growth (%) 11.7 9.9 34.1 9.3 19.5 Net advances 1,36,88,209 1,60,05,859 2,48,48,615 2,77,16,970 3,13,32,541
Core PPOP 6,17,947 7,15,361 8,37,344 9,97,979 11,89,273 Investments 45,55,357 51,70,014 70,24,150 79,83,230 89,91,132
Provisions & contingencies 1,50,618 1,19,197 2,34,921 1,14,146 1,36,536 Cash, other balances 15,23,269 19,37,651 21,91,474 24,36,745 29,65,369
PBT 4,90,155 5,84,853 7,08,953 9,17,363 10,96,326 Interest earning assets 1,97,66,835 2,31,13,524 3,40,64,239 3,81,36,946 4,32,89,042

Extraordinary items 0 0 0 0 0 Fixed assets 60,837 80,165 1,13,990 1,24,876 1,33,916

Tax expense 1,20,541 1,43,766 1,00,830 2,15,580 2,69,696 Other assets 8,57,678 14,67,125 19,98,002 23,32,230 26,63,835
Minority interest 0 0 0 0 0 Total assets 2,06,85,351 2,46,60,815 3,61,76,231 4,05,94,051 4,60,86,793

Income from JV/Associates 0 0 0 0 0 BVPS (Rs) 434.2 503.7 579.5 650.9 735.7
Reported PAT 3,69,614 4,41,087 6,08,123 7,01,782 8,26,630 Adj. BVPS (INR) 428.3 497.8 551.5 621.4 704.4
PAT growth (%) 18.8 19.3 37.9 15.4 17.8 Gross advances 1,38,05,542 1,61,42,365 2,50,79,431 2,79,63,565 3,15,98,829
Adjusted PAT 3,69,614 4,41,087 6,08,123 7,01,782 8,26,630 Credit to deposit (%) 87.8 85.0 104.4 95.1 89.7
Diluted EPS (Rs) 66.3 78.7 91.7 91.9 108.2 CASA ratio (%) 48.2 44.4 38.2 35.9 36.9
Diluted EPS growth (%) 17.8 18.6 16.5 0.2 17.8 Cost of deposits (%) 3.4 3.6 5.0 4.9 4.7
DPS (Rs) 15.5 19.0 19.5 21.0 24.0 Loans-to-Assets (%) 66.2 64.9 68.7 68.3 68.0
Dividend payout (%) 23.3 24.0 24.4 22.7 22.1 Net advances growth (%) 20.8 16.9 55.2 11.5 13.0
Effective tax rate (%) 24.6 24.6 14.2 23.5 24.6 Deposit growth (%) 16.8 20.8 26.4 22.4 19.9
Net interest margins (%) 3.9 4.1 3.4 3.5 3.6 Book value growth (%) 17.2 16.0 15.0 12.3 13.0
Cost-income ratio (%) 36.9 40.4 40.2 41.3 40.3 Source: Company, Emkay Research
Shares outstanding (mn) 5,545.5 5,579.7 7,596.9 7,596.9 7,596.9

Source: Company, Emkay Research

Asset Quality and Other Metrics Valuations and Key Ratios

Y/E Mar (Rs mn) FY22 FY23 FY24 FY25E FY26E Y/E Mar FY22 FY23 FY24 FY25E FY26E

Asset quality P/E (x) 20.5 17.3 16.0 13.9 11.8

Gross NPLs 1,61,409.3 1,80,190.0 3,11,732.9 3,42,492.8 3,80,411.4 P/B (x) 3.1 2.7 2.2 2.0 1.7

Net NPLs 44,076.7 43,684.2 80,917.3 95,898.0 1,14,123.4 P/ABV (x) 3.2 2.7 2.3 2.1 1.8

GNPA ratio (%) 1.2 1.1 1.2 1.2 1.2 P/PPOP (x) 11.9 10.9 10.4 9.5 8.0

NNPA ratio (%) 0.3 0.3 0.3 0.3 0.4 Dividend yield (%) 1.0 1.3 1.5 1.4 1.6

Provision coverage (%) 72.7 75.8 74.0 72.0 70.0 DuPont-RoE split (%)

Gross slippages 2,68,614.3 2,45,363.1 4,04,000.0 3,07,599.2 3,79,185.9 NII/avg assets 3.8 3.8 3.2 3.3 3.3

Gross slippage ratio (%) 1.9 1.5 1.6 1.1 1.2 Other income 1.5 1.4 1.4 1.3 1.4

LLP ratio (%) 1.2 0.8 0.6 0.5 0.5 Fee income 1.4 1.4 1.1 1.2 1.3

NNPA to networth (%) 1.8 1.5 1.8 1.9 2.0 Opex 2.0 2.1 1.9 1.9 1.9

Capital adequacy PPOP 3.4 3.1 3.1 2.7 2.8

Total CAR (%) 18.9 19.3 18.8 18.5 18.1 Core PPOP 3.2 3.2 2.8 2.6 2.7

Tier-1 (%) 17.9 17.1 16.8 16.7 16.5 Provisions 0.8 0.5 0.7 0.3 0.3

CET-1 (%) 16.7 16.4 17.4 17.4 17.6 Tax expense 0.6 0.6 0.3 0.6 0.6

RWA-to-Total Assets (%) 65.4 64.3 68.2 69.0 70.0 RoA (%) 1.9 1.9 1.8 1.8 1.9

Miscellaneous Leverage ratio (x) 8.6 8.7 8.0 8.2 8.2

Total income growth (%) 7.7 22.6 59.5 13.0 12.7 RoE (%) 16.7 17.0 14.2 15.0 15.7

Opex growth (%) 14.4 27.3 33.0 14.4 14.6 Quarterly data
Rs mn, Y/E Mar Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24
Core PPOP growth (%) 15.5 15.8 17.1 19.2 19.2
NII 2,86,733 2,89,286 2,73,852 2,84,713 2,90,768
PPOP margin (%) 40.7 36.5 30.7 29.7 31.5
NIM(%) 4.1 4.0 3.6 3.6 3.6
PAT/PPOP (%) 57.7 62.7 64.4 68.0 67.0
PPOP 2,44,573 2,64,709 2,26,939 2,36,473 2,92,742
LLP-to-Core PPOP (%) 24.4 16.7 28.1 11.4 11.5
PAT 1,64,730 1,81,563 1,59,761 1,63,725 1,65,119
Yield on advances (%) 7.9 8.6 10.2 9.2 9.1
EPS (Rs) 21.59 21.37 28.57 29.28 29.53
Cost of funds (%) 3.5 3.9 5.8 5.3 5.0
Source: Company, Emkay Research
Source: Company, Emkay Research

This report is intended for [email protected] use and downloaded at 04/22/2024 12:56 PM
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>.Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research
analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
April 22, 2024 |4
HDFC Bank (HDFCB IN) India Equity Research | Result Update

RECOMMENDATION HISTORY - TREND

RECOMMENDATION HISTORY - DETAILS

Closing BUY Hold Sell Reduce

Date TP (INR) Rating Analyst
Price (INR) Add Price Target Price
2150
17-Jan-24 1,538 2,100 Buy Anand Dama
1972
30-Nov-23 1,559 2,100 Buy Anand Dama
17-Oct-23 1,541 2,100 Buy Anand Dama 1794

19-Sep-23 1,629 2,100 Buy Anand Dama 1616

11-Sep-23 1,632 2,100 Buy Anand Dama
1438
17-Jul-23 1,679 2,150 Buy Anand Dama
1260

14-Apr-24
24-Apr-21

21-Apr-22

18-Apr-23
25-May-23 1,610 2,050 Buy Anand Dama

22-Oct-21

19-Oct-22

16-Oct-23
24-Apr-23 1,669 2,050 Buy Anand Dama
15-Apr-23 1,673 2,050 Buy Anand Dama
09-Mar-23 1,612 1,925 Buy Anand Dama Source: Bloomberg, Company, Emkay Research

15-Jan-23 1,583 1,925 Buy Anand Dama

04-Jan-23 1,592 1,800 Buy Anand Dama
16-Oct-22 1,423 1,800 Buy Anand Dama
04-Oct-22 1,437 1,800 Buy Anand Dama
17-Jul-22 1,347 1,800 Buy Anand Dama
01-Jun-22 1,379 1,800 Buy Anand Dama
23-May-22 1,289 1,800 Buy Anand Dama
18-Apr-22 1,364 1,950 Buy Anand Dama
05-Apr-22 1,572 2,050 Buy Anand Dama
04-Apr-22 1,619 2,050 Buy Anand Dama
16-Jan-22 1,510 2,050 Buy Anand Dama
04-Jan-22 1,494 2,050 Buy Anand Dama
17-Oct-21 1,649 2,050 Buy Anand Dama
05-Oct-21 1,559 1,850 Buy Anand Dama
18-Jul-21 1,488 1,850 Buy Anand Dama

Source: Company, Emkay Research

This report is intended for [email protected] use and downloaded at 04/22/2024 12:56 PM
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>.Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research
analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
April 22, 2024 |5
HDFC Bank (HDFCB IN) India Equity Research | Result Update

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EGFSL offers research services to its existing clients as well as prospects. The analyst for this report certifies that all of the views expressed in this report
accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was,
is or will be, directly or indirectly related to specific recommendations or views expressed in this report.
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Please contact the primary analyst for valuation methodologies and assumptions associated with the covered companies or price targets.

Disclaimer for U.S. persons only: Research report is a product of Emkay Global Financial Services Ltd., under Marco Polo Securities 15a6 chaperone
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("Marco Polo"). Transactions in securities discussed in this research report should be effected through Marco Polo or another U.S. registered broker dealer.

This report is intended for [email protected] use and downloaded at 04/22/2024 12:56 PM
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>.Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research
analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
April 22, 2024 |6
HDFC Bank (HDFCB IN) India Equity Research | Result Update

RESTRICTIONS ON DISTRIBUTION

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ANALYST CERTIFICATION BY EMKAY GLOBAL FINANCIAL SERVICES LIMITED (EGFSL)

The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and
their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her compensation was, is,
or will be, directly or indirectly, related to specific recommendations or views expressed in the report. The research analyst (s) primarily responsible of the
content of this research report, in part or in whole, certifies that he or his associated persons1 may have served as an officer, director or employee of the
issuer or the new listing applicant (which includes in the case of a real estate investment trust, an officer of the manageme nt company of the real estate
investment trust; and in the case of any other entity, an officer or its equivalent counterparty of the entity who is respons ible for the management of the
issuer or the new listing applicant). The research analyst(s) primarily responsible for the content of this research report or his associate may have Financial
Interests2 in relation to an issuer or a new listing applicant that the analyst reviews. EGFSL has procedures in place to eliminate, avoid and manage any
potential conflicts of interests that may arise in connection with the production of research reports. The research analyst(s) responsible for this report
operates as part of a separate and independent team to the investment banking function of the EGFSL and procedures are in place to ensure that confidential
information held by either the research or investment banking function is handled appropriately. There is no direct link of EGFSL compensation to any
specific investment banking function of the EGFSL.

1
An associated person is defined as (i) who reports directly or indirectly to such a research analyst in connection with the preparation of the reports; or (ii)
another person accustomed or obliged to act in accordance with the directions or instructions of the analyst.

2
Financial Interest is defined as interest that are commonly known financial interest, such as investment in the securities in respect of an is suer or a new
listing applicant, or financial accommodation arrangement between the issuer or the new listing applicant and the fir m or analysis. This term does not
include commercial lending conducted at the arm’s length, or investments in any collective investment scheme other than an issuer or new listing applicant
notwithstanding the fact that the scheme has investments in securities in respect of an issuer or a new listing applicant.

COMPANY-SPECIFIC / REGULATORY DISCLOSURES BY EMKAY GLOBAL FINANCIAL SERVICES LIMITED (EGFSL):

Disclosures by Emkay Global Financial Services Limited (Research Entity) and its Research Analyst under SEBI (Research Analyst) Regulations, 2014 with
reference to the subject company(s) covered in this report-:

1. EGFSL, its subsidiaries and/or other affiliates and Research Analyst or his/her associate/relative’s may have Financial Interest/proprietary positions in
the securities recommended in this report as of April 22, 2024
2. EGFSL, and/or Research Analyst does not market make in equity securities of the issuer(s) or company(ies) mentioned in this Report
Disclosure of previous investment recommendation produced:
3. EGFSL may have published other investment recommendations in respect of the same securities / instruments recommended in this research report
during the preceding 12 months. Please contact the primary analyst listed in the first page of this report to view previous investment
recommendations published by EGFSL in the preceding 12 months.
4. EGFSL, its subsidiaries and/or other affiliates and Research Analyst or his/her relative’s may have material conflict of interest in the securities
recommended in this report as of April 22, 2024
5. EGFSL, its affiliates and Research Analyst or his/her associate/relative’s may have actual/beneficial ownership of 1% or more securities of the
subject company at the end of the month immediately preceding the April 22, 2024
6. EGFSL or its associates may have managed or co-managed public offering of securities for the subject company in the past twelve months.
7. EGFSL, its affiliates and Research Analyst or his/her associate may have received compensation in whatever form including compensation for
investment banking or merchant banking or brokerage services or for products or services other than investment banking or merchant banking or
brokerage services from securities recommended in this report (subject company) in the past 12 months.
8. EGFSL, its affiliates and/or and Research Analyst or his/her associate may have received any compensation or other benefits from the subject
company or third party in connection with this research report.

Emkay Rating Distribution

Ratings Expected Return within the next 12-18 months.

BUY >15% upside

ADD 5-15% upside

REDUCE 5% upside to 15% downside

SELL <15% downside

Emkay Global Financial Services Ltd.

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This report is intended for [email protected] use and downloaded at 04/22/2024 12:56 PM
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>.Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research
analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
April 22, 2024 |7
HDFC Bank (HDFCB IN) India Equity Research | Result Update

OTHER DISCLAIMERS AND DISCLOSURES:

Other disclosures by Emkay Global Financial Services Limited (Research Entity) and its Research Analyst under SEBI (Research Analyst)
Regulations, 2014 with reference to the subject company(s) -:

EGFSL or its associates may have financial interest in the subject company.

Research Analyst or his/her associate/relative’s may have financial interest in the subject company.

EGFSL or its associates and Research Analyst or his/her associate/ relative’s may have material conflict of interest in the subject company. The research
Analyst or research entity (EGFSL) have not been engaged in market making activity for the subject company.

EGFSL or its associates may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately
preceding the date of public appearance or publication of Research Report.

Research Analyst or his/her associate/relatives may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the
month immediately preceding the date of public appearance or publication of Research Report.

Research Analyst may have served as an officer, director or employee of the subject company.

EGFSL or its affiliates may have received any compensation including for investment banking or merchant banking or brokerage services from the subject
company in the past 12 months. . Emkay may have issued or may issue other reports that are inconsistent with and reach different conclusion from the
information, recommendations or information presented in this report or are contrary to those contained in this report. Emkay Investors may visit
www.emkayglobal.com to view all Research Reports. The views and opinions expressed in this document may or may not match or may be contrary with
the views, estimates, rating, and target price of the research published by any other analyst or by associate entities of Emkay; our proprietary trading,
investment businesses or other associate entities may make investment decisions that are inconsistent with the recommendations expressed herein. EGFSL
or its associates may have received compensation for products or services other than investment banking or merchant banking or brokerage services from
the subject company in the past 12 months. EGFSL or its associates may have received any compensation or other benefits from the Subject Company or
third party in connection with the research report. EGFSL or its associates may have received compensation from the subject company in the past twelve
months. Subject Company may have been client of EGFSL or its affiliates during twelve months preceding the date of distribution of the research report and
EGFSL or its affiliates may have co-managed public offering of securities for the subject company in the past twelve months.

Digitally signed by SESHADRI KUMAR SEN

DN: c=IN, o=Personal,

SESHADRI
pseudonym=133422712594461905DSVUy8k
k9un4ET,
2.5.4.20=1217a0ac22644d6a490a50ef35978
ca2cbcf94e39548b678bafc1f29f6e1ced7,

KUMAR SEN
postalCode=400011, st=Maharashtra,
serialNumber=07837cb61a11364e9d2229a7
8d0af55d5d599551e83b808ee76a10dbb491
f06e, cn=SESHADRI KUMAR SEN
Date: 2024.04.22 01:33:27 +05'30'
This report is intended for [email protected] use and downloaded at 04/22/2024 12:56 PM
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>.Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research
analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
April 22, 2024 |8