Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next
Author: TMFTheSnake Big red star, 1000 posts Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 619  
Subject: Q2: the goodness continues Date: 10/17/2012 5:00 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 9
A little slow on this one, but Q2 looked good - again. We're still waiting to hear from the likes of ICICI, Yes, and SBI so comparisons will have to wait, but loan growth over 20% and keeping the NIM at 4.2% are pretty strong results.

I'm still a little leery of the reduced loan loss provisions, but management talked on the call about specific provisions (those made with specific loans or loan groups in mind) and specific reserves are 82% of gross non-performing assets. In addition there are general provisions made to address the general risk of a growing loan portfolio. According to management these reserves push total coverage to over 200%.

This is more reassuring though it is hard to track these numbers through the quarterly reported numbers so I am having to take management's word on this.

All in all, another good quarter with HDFC doing what we expect. I'm still watching loan quality, especially as retail lending increases (it was 53% of loans in Q2). The stabilizing of the rupee has helped, as well and the shares look to be near the low end of my estimate of fair value ($38-$41 - though this can change dramatically depending on FX).
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement