HDB Financial Services Aims to Hold Margins as Rates Rise
Dow Jones10-16
0207 GMT - Rising interest rates are a concern for HDB Financial Services' management, which is aiming to hold net interest margin at around 8% over the medium term, Nomura analysts say in a note. HDB plans to pass on the RBI's 25-basis-point October repo hike to floating-rate loan-against-property customers, with rate revisions in other segments to be calibrated. While 2Q net profit was below Nomura's estimate, the lending business was largely in line, and Nomura expects healthy disbursal momentum to continue. Nomura upgrades the stock to buy from neutral with a target price of 790 rupees. Shares closed 7.7% lower at 538.60 rupees.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments