{"id":128777,"date":"2022-05-03T10:24:45","date_gmt":"2022-05-03T14:24:45","guid":{"rendered":"https:\/\/44.250.171.167\/?p=128777"},"modified":"2022-10-06T03:29:23","modified_gmt":"2022-10-06T07:29:23","slug":"housing-development-finance-corporation-ltd-q4-fy22-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/housing-development-finance-corporation-ltd-q4-fy22-earnings-conference-call-insights\/","title":{"rendered":"Housing Development Finance Corporation Ltd Q4 FY22 Earnings Conference Call Insights"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"Housing Development Finance Corp Ltd Q4 FY22 Earnings Concall\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/qph4fE6WtoE?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 Housing Development Finance Corporation Ltd (<a href=\"https:\/\/44.250.171.167\/symbol\/HDFC\/\">HDFC<\/a>) Q4 FY22 Earnings Concall<\/strong><\/p>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>Suresh Ganapathy from Macquarie asked that ahead of merger, if the bank would like to grow the non-individual book now because it\u2019s shown some traction in the last couple of quarters. Keki Mistry CEO said the bank recognizes that to do retail individual housing loans, and also need to do construction finance loans. So the activity of giving construction finance loans will continue even in the banking structure.<\/li>\n<\/ul>\n<ul>\n<li>Suresh Ganapathy from Macquarie also asked about the moral of employees ahead of the merger. Keki Mistry CEO said the HDFC expect the motivation to continue in the current year. So all of HDFC\u2019s employees will be fitted into the bank, will have a major role to play in the bank and the bank wants to drive the mortgage business going forward. So the morale is high.<\/li>\n<\/ul>\n<ul>\n<li>Shubhranshu Mishra of Systematix Group asked about the incremental yield on home loans, LAP, LRD and construction finance. Keki Mistry CEO answered that the split of loans is individual loans 79% of total loans, construction finance is 9%, lease rental discounting loans is 7% and corporate loans 5%. On incremental figures, for full year, 88% of loans were for individuals and 12% were for non-individuals.<\/li>\n<\/ul>\n<ul>\n<li>Adarsh Parasrampuria with CLSA asked about the driver of momentum on NII. Keki Mistry CEO replied that NII has continued to remain strong. A slight reduction was seen in 3Q, due to higher level of liquidity HDFC was carrying. So because the level of liquidity has gone lower, the NIM has consequently gone higher.<\/li>\n<\/ul>\n<ul>\n<li>Shweta Daptardar from Elara Capital queried what percentage of HDFC borrowings are linked to external benchmark rates whether it\u2019s REPO or LIBOR or treasury bills. \u00a0Keki Mistry CEO replied that HDFC match its assets and liabilities in a manner in which the liabilities are linked to certain external benchmarks. There are different external benchmarks that are used. This is part of the treasury operations.<\/li>\n<\/ul>\n<ul>\n<li>Gurpreet Arora from Aviva Life India queried about the composition of liabilities for the current year. Keki Mistry CEO said that the source of liabilities will keep changing depending on what is the best at that point in time. Looking at the current level of interest rate, on will end up borrowing medium to longer term and then sourcing it back to an appropriate benchmark.<\/li>\n<\/ul>\n<ul>\n<li>Kunal Thanvi of Banyan Tree Advisors asked about the loan mix prior to merger.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Keki Mistry CEO replied that corporate book would also continue because the bank also does corporate loans. But it\u2019s not a very large part, it\u2019s just 5% of the total lending, but that would continue because the bank does corporate loans in any case.<\/li>\n<\/ul>\n<ul>\n<li>Abhijit Tibrewal with Motilal Oswal asked if the incremental lending that HDFC is doing are happening at rates which are significantly better than the rates of non-individual disbursement. Keki Mistry CEO said that interest rates in the economy by and large have been increasing. As interest rates go up, naturally the lending rate will also go higher. But the increase is from 3.3% to 3.4%, nothing significant.<\/li>\n<\/ul>\n<ul>\n<li>Nischint Chawathe from Kotak Securities asked if the liquidity has come down which was higher last quarter which caused pressure on margins. Keki Mistry CEO said that it has come down. Last quarter the excess liquidity was INR55,000 crores and this quarter the avg. is INR46,000 crores.<\/li>\n<\/ul>\n<ul>\n<li>Aditya Jain from Citigroup asked that if there is scope for reduction in the average liquidity of INR46,000 crores this quarter. Keki Mistry CEO replied that it\u2019s still higher than what\u2019s required by regulation. HDFC added that technically there is scope to bring it down little further.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Housing Development Finance Corporation Ltd (HDFC) Q4 FY22 Earnings Concall Q&amp;A Highlights: Suresh Ganapathy from Macquarie asked that ahead of merger, if the bank would like to grow the non-individual book now because it\u2019s shown some traction in the last couple of quarters. Keki Mistry CEO said the bank recognizes that to [&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":[151,8760],"class_list":["post-128777","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-finance-stocks","tag-banking","tag-loan-management"],"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":145074,"url":"https:\/\/alphastreet.com\/india\/housing-development-finance-corporation-ltd-q4-fy23-earnings-conference-call-insights\/","url_meta":{"origin":128777,"position":0},"title":"Housing Development Finance Corporation Ltd Q4 FY23 Earnings Conference Call Insights","author":"Praveen","date":"May 5, 2023","format":false,"excerpt":"Key highlights from Housing Development Finance Corporation Ltd (HDFC) Q4 FY23 Earnings Concall Management Update: [00:02:35] HDFC said it had its highest monthly individual disbursements in March 2023. Q&A Highlights: [00:31:52] Suresh Ganapathy of Macquarie Capital asked about the warrants expiring on Aug. 10, if the merger happens in July.\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":145118,"url":"https:\/\/alphastreet.com\/india\/housing-development-finance-corporation-ltd-hdfc-q4-fy23-earnings-concall-transcript\/","url_meta":{"origin":128777,"position":1},"title":"Housing Development Finance Corporation Ltd (HDFC) Q4 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"May 5, 2023","format":false,"excerpt":"Housing Development Finance Corporation Ltd (NSE:HDFC) Q4 FY23 Earnings Concall dated May. 04, 2023. Corporate Participants: Keki M. Mistry\u00a0--\u00a0Vice Chairman and Chief Executive Officer V. Srinivasa Rangan\u00a0--\u00a0Executive Director Renu Sud Karnad\u00a0--\u00a0Managing Director Analysts: Suresh Ganapathy\u00a0--\u00a0Macquarie Capital -- Analyst Mahrukh Adajania\u00a0--\u00a0Nuvama -- Analyst Mansi Sajeja\u00a0--\u00a0SBI Funds Management -- Analyst Adarsh Parasrampuria\u00a0--\u00a0CLSA\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":128749,"url":"https:\/\/alphastreet.com\/india\/housing-development-finance-corporation-ltd-hdfc-q4-2022-earnings-concall-transcript\/","url_meta":{"origin":128777,"position":2},"title":"Housing Development Finance Corporation Ltd (HDFC) Q4 2022 Earnings Concall Transcript","author":"Praveen","date":"May 2, 2022","format":false,"excerpt":"Housing Development Finance Corporation Ltd\u00a0 (NSE: HDFC) Q4 2022 earnings concall dated May 2, 2022 Corporate Participants: Keki M. Mistry\u00a0--\u00a0Vice Chairman and Chief Executive Officer S. Rangan--\u00a0Executive Director Conrad D'Souza\u00a0--\u00a0Member of Executive Management and Chief Investor Relations Officer Analysts: Suresh Ganapathy\u00a0--\u00a0Macquarie -- Analyst Mahrukh Adajania\u00a0--\u00a0Edelweiss Financial Service -- Analyst Shubhranshu\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":128628,"url":"https:\/\/alphastreet.com\/india\/hdfc-life-insurance-company-ltd-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":128777,"position":3},"title":"HDFC Life Insurance Company Ltd Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"April 27, 2022","format":false,"excerpt":"https:\/\/youtu.be\/OkH9KYjojDQ Key highlights from HDFC Life Insurance Company Ltd (HDFCLIFE) Q4 FY22 Earnings Concall Q&A Highlights: Suresh Ganapathy from Macquarie asked about the details of the 80 bp change in operating assumptions impacting margin. Niraj Shah CFO said that it\u2019s the seasonality assumptions the company had at the beginning of\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":132991,"url":"https:\/\/alphastreet.com\/india\/housing-development-finance-corporation-ltd-hdfc-q1-fy23-earnings-concall-transcript\/","url_meta":{"origin":128777,"position":4},"title":"Housing Development Finance Corporation Ltd (HDFC) Q1 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"July 29, 2022","format":false,"excerpt":"Housing Development Finance Corporation Ltd (NSE:HDFC) Q1 FY23 Earnings Concall dated Jul. 29, 2022 Corporate Participants: Keki Minoo Mistry -- Executive Vice Chairman of the Board, Chief Executive Officer Renu Sud Karnad -- Managing Director, Executive Director Conrad D'Souza -- Chief Investor Relations Officer, Member of Executive Management Vedanthachari Srinivasa\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":139956,"url":"https:\/\/alphastreet.com\/india\/housing-development-finance-corporation-ltd-hdfc-q3-fy23-earnings-concall-transcript\/","url_meta":{"origin":128777,"position":5},"title":"Housing Development Finance Corporation Ltd (HDFC) Q3 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"February 2, 2023","format":false,"excerpt":"Housing Development Finance Corporation Ltd (NSE:HDFC) Q3 FY23 Earnings Concall dated Feb. 02, 2023. Corporate Participants: Keki M. Mistry\u00a0--\u00a0Vice Chairman and Chief Executive Officer V. 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