Result Previews - HDFC Bank - Target Rs. 517

HDFC Bank is expected to announce a healthy performance for 2Q FY 2012.
Expect the bank to report reasonable NII growth of 18.0% yoy to Rs.2,982 cr
on the back of sequentially stable NIM.

Non-interest income is expected to register growth of 22.0% yoy, leading to operating income growth of 19.1% yoy. Due to relatively faster rise in operating expenses, pre-provision profit is
expected to grow by relatively lower 16.8% yoy.

However, provisions are expected to decline by 22.9% yoy, leading to healthy net profit growth of
30.3% yoy to Rs.1,188 cr.

At the current market price stock is trading at attractive valuations
of 3.2x FY2013E P/ABV, in our view. Maintain accumulate
recommendation on the stock with a target price of  Rs. 517.

- Review by Angel Broking.
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