Citigroup to exit HDFC for up to $2.1 billion

Originally posted by genieinvestor For all the big fans of HDFC bank who believe in the pristine image of the Bank.....here is something I stumbled upon while researching for properties in Mumbai. http://powai.info/2011/12/14/is-nahar-amrit-shakti-housing-powai-become-mumbai%E2%80%99s-hotel-california/ How HDFC is part of the daylight robbery that is Nahar Amrit Shakti. Also this is not the only site which has complaints regarding Nahar, but just do a google search and you will find similar stuff in other sites as well. Very disgraceful for Deepak Parekh who is an exclusive partner for this project and HDFC Bank which has lured many people into this project with shows not only in india but as far as Dubai and London.

I am trying to find out per share book value(standalone/consolidated) of HDFC after Fy 12 results - not mentioned in submitted results by the company.

HDFC currently available at PE of around 17.5 on consolidated basis, which appears attractive even on historic basis.

However, going through brokerage research report it appears that company is trading at P/ABV of around 5 which is high on historic basis.

Can senior members please throw light and guide whether HDFC is historically attractive currently or expensive?

Many thanks,

                      AGM      
    Housing Development Finance Corporation

Expects loan growth of 18-20% in FY'13 largely through Tier 2 and 3 cities


HDFC held its AGM on 11th June'12 and was addressed by Chairman Mr. Deepak Parekh

Key highlights

HDFC reported net profit of Rs 1001.91 crore for Q1 FY'13, up by 19% y.o.y. Bank saw its loan book grew by 23% in Q1 FY'13. Loan approvals grew by 17% and loan disbursement grew by 20% in June quarter. NII stood at 4%.

Nearly 90% of incremental demand for loans came from individual segments.

The loan growth continues to come from residential home loan market in Tier 2 and 3 cities. According to the management, HDFC has still not tapped the Tier 2 cities fully and the scope for Tier 3 is wide open.

Metro home loan market particularly Mumbai residential market was completely stagnant during Q1 FY'13. High home prices together with delay in execution of many under construction property resulted in lower confidence among the buyers.

HDFC was given the mandate to do the valuation for Kingfisher properties to be sold off for dues of many consortiums of banks.

According to the Chairman, although the rate cycle has peaked out, the pace at which the interest rate will come down is difficult to determine as inflation is taking its time before cool off particularly the food inflation.

Management also indicated that there is no stress on retail portfolio and the quality of assets continue to remain high.

HDFC doest not require any Tier 1 capital in FY'13 and can manage the growth targets with existing capital and internal accruals.

For FY'13, management expects loan book to grow by 18-20%.