Fee Based Income is around 25% of total Income for HDFC bank. The fee based Income is growing at 22% per year for HDFC Bank. The non-Intt Income is growing at 26%. The increase would have been more, but due to a loss of 21.1 crore on trasury operations, the growth is shown at 26%.
I have analysed HDFC Bank , with ICICI Bank, UTI Bank, Kotak Bank and Yes Bank. Though the growth rate in some areas are a shade higher in icici Bank than HDFC Bank, still when important parameters such as net NPA, NIM, % of casa to tot deposit, Capital Adequacy Ratio etc, are considered ,HDFC Bank scores better than ICICI Bank. For last 5 years it shows a more than 20% CAGR growth in business, Net profit, Net Intt Income, Other Income etc. HDFC Bank has the highest Net Intt Margin of 4.3% in the Industry. Its net NPA at at 0.4% is the lowest in the Industry. Its cost of fund at 3.8% also is the lowest in the Industry.
The only negative with HDFC Bank is that they have not opened any Branch in last nine months. Imagine a Bank giving a growth of almost 30% in almost all parameters without opening a single branch, is quite praiseworthy. I read somewhere that they applied to RBI for licenses of 100 Branches to be opened next fiscal.
In a price band of 900-950, I feel it is an opportunity to enter the stock.
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