HDFC Bank’s Q1 provides some relief to investors despite higher bad loans

HDFC Bank’s June 2020 quarter (Q1) numbers, reported on Saturday last week, offer comfort to investors on the asset quality front with lower moratorium, accelerated recognition of non-performing assets (NPAs) and higher provision coverage.

Therefore, despite higher bad loans and a sharp fall in retail loan originations in Q1, the stock of HDFC Bank gained 3.1 per cent on Monday, outperforming a 1.6 per cent rise in the Nifty Bank index. In Q1, absolute gross NPAs or bad loans were up 9 per cent quarter-on-quarter to Rs 13,773.5 crore, mainly due to accelerated NPA recognition …