{"id":128479,"date":"2022-04-18T04:03:15","date_gmt":"2022-04-18T08:03:15","guid":{"rendered":"https:\/\/44.250.171.167\/?p=128479"},"modified":"2022-10-05T06:36:15","modified_gmt":"2022-10-05T10:36:15","slug":"hdfc-bank-limited-q4-fy22-earnings-conference-call-summary","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/hdfc-bank-limited-q4-fy22-earnings-conference-call-summary\/","title":{"rendered":"HDFC Bank Limited Q4 FY22 Earnings Conference Call Summary"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"HDFC Bank Limited Q4 FY22 Earnings Concall\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/eLap7Rd5Jcw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong>Key highlights from HDFC Bank Limited (<a href=\"https:\/\/44.250.171.167\/symbol\/HDFCBANK\/\">HDFCBANK<\/a>) Q4 FY22 Earnings Concall<\/strong><\/p>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>Mahrukh Adajania from Edelweiss asked about the yield on commercial banking loan. Srinivasan Vaidyanathan CFO replied that the yield on commercial banking will be approximately about 8% or so. And 9%-10% assortment offers the agri yield.<\/li>\n<\/ul>\n<ul>\n<li>Mahrukh Adajania from Edelweiss also asked about the accounting policy associated with RSUs in terms of upfront cost and amortization. Srinivasan Vaidyanathan CFO answered that for RSUs, the bank will decide what it needs to do whether it is from a shareholder point of view, it mitigates the dilution compared to ESOPs.<\/li>\n<\/ul>\n<ul>\n<li>Rahul Jain with Goldman Sachs enquired about the reason for liquidity coverage ratio dropping in 4Q22. Srinivasan Vaidyanathan CFO replied that the deposit growth from an amount point of view exceeded the loan in the quarter. But from an LCR value point of view, it will come down because there are certain things that need to have liquidity and run down assumptions etc.<\/li>\n<\/ul>\n<ul>\n<li>Rahul Jain with Goldman Sachs asked about various segments in retail showing momentum. Srinivasan Vaidyanathan CFO answered that it was because in 4Q22 retail grew by about 5% sequentially and the payments business (card spending) grew about 28% or so, while the cards business on the loan side was about 14%. The growth in 4Q on vehicles was better than the last quarter.<\/li>\n<\/ul>\n<ul>\n<li>Rahul Jain with Goldman Sachs queried about fee income picking up 12% YoY. Srinivasan Vaidyanathan CFO replied that the 12% growth was partly aided by the payment doing a little better. However, the bank added that payment still is not at the business-as-usual type of growth seen in the past.<\/li>\n<\/ul>\n<ul>\n<li>Aditya Jain from Citigroup asked if the historical location of branches vs. current location gives same kind of branch maturity model. Srinivasan Vaidyanathan CFO replied that it gives the same kind of maturity model. And the bank drives the branches to those best-in-class, and that&#8217;s part of the current model the bank has.<\/li>\n<\/ul>\n<ul>\n<li>Manish Shukla from Axis Capital queried that in terms of the overall loan book, how much is floating rate and, within that, how much is linked to repo. \u00a0Srinivasan Vaidyanathan CFO said that 46% is fixed and 54% is floating. Repo standalone was 29-30% and T-bill was about 10%.<\/li>\n<\/ul>\n<ul>\n<li>Sagar Doshi asked about the treasury income reducing QonQ and YonY and the outlook of it. Srinivasan Vaidyanathan CFO replied that in 4Q21 it was about INR655 crores; 3Q22 was little more than INR1,000 crores; and 4Q22 was close to nothing or negative INR40 crores. All these were opportunistic gains. Going forward it will be minimalistic and also said one should not expect the treasury trading income to sustain at any big levels for the time being.<\/li>\n<\/ul>\n<ul>\n<li>Adarsh Parasrampuria of CLSA asked about the cost to income spike expected in the near term. Srinivasan Vaidyanathan CFO replied that it expects cost to income to go up as the bank has more retail lending and liability activity coming in. However in the medium term (3-5) year\u2019s time, the bank expects it to come down back to mid 30s.<\/li>\n<\/ul>\n<ul>\n<li>Saurabh from JPMorgan asked that when does the bank expects its market share on credit card to come back the earlier 30% levels. Srinivasan Vaidyanathan CFO said that as a target, the bank doesn\u2019t have a market share specifically with regards to spend. Therefore, the company added it\u2019s difficult to tell how much it will go.<\/li>\n<\/ul>\n<ul>\n<li>Saurabh from JPMorgan also asked about the bank\u2019s revolve rates now vs. pre-pandemic. Srinivasan Vaidyanathan CFO replied that the bank is still at about 70-80% of the pre-COVID \u00a0levels on revolve rate. From 3Q22 to 4Q22, there was marginal improvement of around 1 percentage point.<\/li>\n<\/ul>\n<ul>\n<li>Saurabh from JPMorgan asked about when PayZapp would be launched. Srinivasan Vaidyanathan CFO answered that it\u2019s probably a quarter away. The bank added that it has several [clients] on that from a close user group to making to selective customers and then getting to broad base.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from HDFC Bank Limited (HDFCBANK) Q4 FY22 Earnings Concall Q&amp;A Highlights: Mahrukh Adajania from Edelweiss asked about the yield on commercial banking loan. Srinivasan Vaidyanathan CFO replied that the yield on commercial banking will be approximately about 8% or so. And 9%-10% assortment offers the agri yield. Mahrukh Adajania from Edelweiss also asked [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,1],"tags":[151,1792],"class_list":["post-128479","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-finance-stocks","tag-banking","tag-financial-services"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":131194,"url":"https:\/\/alphastreet.com\/india\/hdfc-bank-limited-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":128479,"position":0},"title":"HDFC Bank Limited Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"July 18, 2022","format":false,"excerpt":"https:\/\/youtu.be\/dY1njWBlVJ8 Key highlights from HDFC Bank Limited (HDFCBANK) Q1 FY23 Earnings Concall Q&A Highlights: Mahrukh Adajania of Edelweiss asked about CRB growth outlook. Srinivasan Vaidyanathan CFO replied that CRB loans had a robust growth of 28-29% YonY in 1Q23 and continues to have aggressive plans across segments in CRB. HDFCBANK\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":143729,"url":"https:\/\/alphastreet.com\/india\/hdfc-bank-limited-q4-fy23-earnings-conference-call-insights\/","url_meta":{"origin":128479,"position":1},"title":"HDFC Bank Limited Q4 FY23 Earnings Conference Call Insights","author":"Praveen","date":"April 17, 2023","format":false,"excerpt":"Key highlights from HDFC Bank Limited (HDFCBANK) Q4 FY23 Earnings Concall Management Update: [00:04:33] HDFCBANK said it issued 1.4 million cards during 4Q23 with total card space at 18 million. Q&A Highlights: [00:20:53]Mahrukh Adajania at Nuvama asked about road map for deposit mobilization in the next 3-4 quarters. Srinivasan V\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":134696,"url":"https:\/\/alphastreet.com\/india\/hdfc-bank-limited-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":128479,"position":2},"title":"HDFC Bank Limited Q2 FY23 Earnings Conference Call Insights","author":"Praveen","date":"October 17, 2022","format":false,"excerpt":"https:\/\/youtu.be\/EsO4GzZgqjg Key highlights from HDFC Bank Limited (HDFCBANK) Q2 FY23 Earnings Concall Management Update: [00:02:06] HDFC added 121 branches in 2Q23 on the distribution expansion an d about 500 more branches are in different stages of the pipeline to be opened in the next few months. Q&A Highlights: [00:17:53] Mahrukh\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":128869,"url":"https:\/\/alphastreet.com\/india\/kotak-mahindra-bank-ltd-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":128479,"position":3},"title":"Kotak Mahindra Bank Ltd Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 5, 2022","format":false,"excerpt":"https:\/\/youtu.be\/hbks-LEQ254 Key highlights from Kotak Mahindra Bank Ltd (KOTAKBANK) Q4 FY22 Earnings Concall Management Update: KOTAKBANK said that the bank is now seeing a sharp drop in the slippage ratio in terms of the new bad loans. For 4Q22, the slippage on an annualized basis is down to 1.08%, which\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":168019,"url":"https:\/\/alphastreet.com\/india\/hdfcbank-q4-call-highlights-rate-cut-impacts-npa-stability-deposit-momentum\/","url_meta":{"origin":128479,"position":4},"title":"HDFCBANK Q4 Call Highlights: Rate Cut Impacts, NPA Stability and Deposit Momentum!","author":"Praveen","date":"April 21, 2025","format":false,"excerpt":"HDFC Bank Ltd, India's largest private sector lender, in its Q4 earnings call discussed margin management amid changing interest rates, explaining that rate cuts immediately affect lending but cost of funds adjustments lag behind. The company detailed how CASA ratios typically move inversely to policy rates and outlined their LDR\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":132254,"url":"https:\/\/alphastreet.com\/india\/yes-bank-limited-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":128479,"position":5},"title":"Yes Bank Limited Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"August 3, 2022","format":false,"excerpt":"https:\/\/youtu.be\/lZ1Me58PrhI Key highlights from Yes Bank Limited (YESBANK) Q1 FY23 Earnings Concall Q&A Highlights: Mahrukh Adajania of Edelweiss asked about risk to the growth guidance. Prashant Kumar MD answered that as of now the bank is not seeing any impact on the demand side, either on the corporate side or\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/128479","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=128479"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/128479\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=128479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=128479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=128479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}