India Earnings Season: A good jump start by Keki Mistry’s HDFC

The HDFC India Homes Fair
Image by Kaustav Bhattacharya via Flickr

An almost vertical 33% rise in Sales to a $800 mln ( at a temporary $1=Rs 50 average) from $600 mln last year in September, and its exemplary 4.3% NIM at the Industry defining low LTV of 70% brought home HDFC a bonanza of chips in a game of consistent upending of Industry challenges with a captive home loan customer base and assets of Rs 1.27 tln from 1 tln reached last year at the same time

September RBI data according to BS showed a growth of 6% in deposits and only 3.4% in credit while even in the US credit grew at 6.1% in the same period. Thus its borrowing rates remained a cool 228 bp lower than its higher lending rates as well. Results season for Indian banks and financial services comanies kicks in completely by tomorrow morning when IndusInd reports growth in credit and retail banking profits, expected to be another 20% as for the previous quarter. Average rerating of banking prospects in the subcontinent is looking at sales growth in credit remaining just below 20%

Infosys kicked off a new bullish trend with good results last Wednesday and TCS may pitch in with margin expansion as well even as recessionary trends in US and Europe are muted by a vertical 9% fall in the value of the rupee in September

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