Indian private sector leader, HDFC Bank, reported a substantial 51.1% increase in Q3 net profit on Monday, amounting to ₹16,811.4 crore. The surge comes following the bank's merger with former mortgage lender HDFC Ltd, which was officially completed on July 1, 2023.
The bank's robust financial performance was further highlighted by a year-on-year net interest income growth of 49.4%, reaching ₹33,789.2 crore. The merger has resulted in the creation of one of the world's largest financial institutions.
According to InvestingPro data, HDFC Bank has a market cap of $139.59 billion and a P/E ratio of 17.51. It's worth noting that the bank's revenue growth has been accelerating, as evidenced by a 25.63% increase in revenue LTM2024.Q1, reaching $14,693.78 million. This aligns with an InvestingPro Tip that highlights HDFC Bank's consistent increase in earnings per share.
InvestingPro also notes that HDFC Bank has raised its dividend for three consecutive years, which is a positive signal for investors looking for stable income. The dividend yield as of Y2023.D289 stands at 1.0%, with a dividend growth of 18.64% LTM2024.Q1. This indicates a solid return for shareholders, in line with another InvestingPro Tip that states stockholders receive high returns on book equity.
Prior to the earnings announcement, HDFC Bank's shares traded down by 0.5%, closing at ₹1,529.5 on BSE. Despite the strong quarterly report, the slight decrease in share price reflects the dynamic nature of market responses. The fair value of HDFC Bank shares, according to InvestingPro, is $80.93 (USD1 = INR83.276), suggesting potential for growth.
The bank's strong performance and positive outlook are backed by InvestingPro's comprehensive data and insightful tips. For more detailed insights, consider exploring the InvestingPro product that includes additional tips.
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