Lifting of RBI restrictions on new credit card sourcing before festive season augurs well: The RBI has partially lifted the restrictions placed on HDFCB in Dec’20 and allowed the bank to source new credit cards.
The company’s return profile remains strong, with ROE/ROCE at 25–26%/21–23% over FY21–24E. We maintain 'buy'. As highlighted in its annual report, the company is embarking on a major diversification journey, which we
The sales momentum is also leading to increased asset turns. Consequently, ROCE seems poised to cross 20% levels for the first time in a decade, after languishing in the mid-teens for most of this period.
Highlights from the management commentary: VIL is focusing on investments in 16 priority circles, which contribute 94% of revenue. Focus on high ARPU subscribers: It aims to scale up higher ARPU subscriber programmes in partn
The restructured book increased sharply to ~₹53b (6.6% of total AUM). SMA loans surged to 21%, while a large portion of the SMA overdue in Assam was eligible for a relief package. As a result, LGDs would remain controlled.