Core Viewpoint - Investors in the Banks - Foreign sector should consider Woori Bank (WF) and HDFC Bank (HDB) for potential value opportunities [1] Valuation Metrics - Woori Bank has a forward P/E ratio of 3.83, while HDFC Bank has a forward P/E of 21.15 [5] - Woori Bank's PEG ratio is 0.34, indicating better expected earnings growth relative to its price, compared to HDFC Bank's PEG ratio of 1.77 [5] - Woori Bank has a P/B ratio of 0.32, significantly lower than HDFC Bank's P/B ratio of 2.85 [6] Investment Ratings - Woori Bank has a Zacks Rank of 2 (Buy), while HDFC Bank has a Zacks Rank of 3 (Hold) [3] - Woori Bank has shown stronger improvement in earnings outlook compared to HDFC Bank [3][7] - Woori Bank has a Value grade of B, whereas HDFC Bank has a Value grade of C [6]

Company Overview - HDFC Bank Limited (HDB) is experiencing significant attention from investors due to high implied volatility in its options market, particularly the Dec. 20, 2024 $100 Put option [1] - The current Zacks Rank for HDFC Bank is 3 (Hold), placing it in the top 29% of the Banks – Foreign industry [3] Market Expectations - High implied volatility indicates that the market anticipates a substantial movement in HDFC Bank shares, potentially due to an upcoming event that could lead to a significant price change [2][4] - Over the last 60 days, one analyst has raised earnings estimates for the current quarter from 49 cents per share to 74 cents, with no analysts lowering their estimates [3] Trading Strategies - Options traders often seek out options with high implied volatility to sell premium, a strategy that can capture decay and reduce risk if the underlying stock does not move as much as expected [4]

Group 1 - The newly formed HDFC Bank has become India's largest private sector banking group by assets following its merger with its parent company HDFC [1] - The merger includes subsidiaries in insurance, brokerage, and asset management, indicating a diversified financial services approach [1] - There is a cautionary note that big mergers are not always accretive, suggesting potential challenges or risks associated with the merger [1]

HDFC BANK Q2FY25 Earnings Presentation October 19, 2024 Key performance metrics for Q2 FY25 | --- | --- | --- | |-------|-------|---------------------------------------------------------------------------------------------| | | | | | | ➢ | Deposits; average YoY ↑ ₹ 3.15 tn (15.5%) ; EOP YoY ↑ ₹ 3.27 tn (15.1%) | | | | ✓ Average deposits QoQ ↑ ₹ 0.71 tn (3.1%) ; EOP QoQ ↑ ₹ 1.21 tn (5.1%) | | | | ✓ Average CASA QoQ ↓ ₹ 0.02 tn ( ↓ 0.3%) ; EOP QoQ ↑ ₹ 0.20 tn (2.3%) | | | | ✓ Average time deposits QoQ ↑ ₹ 0.7 ...

Financial Data and Key Metrics Changes - The profit after tax grew to INR 16,800 crores, reflecting an optical growth rate of 5.3%, but an adjusted growth rate of 17% when accounting for bond gains and tax adjustments from the previous year [5] - The average assets under management increased by approximately 10.2% year-on-year, with stable margins reported at 3.46% [5] - The gross non-performing assets (NPA) remained stable at about 1.4%, with gross slippages at 1.2%, which is an improvement compared to the same period last year [5] Business Line Data and Key Metrics Changes - Fee income reached INR 8,000 crores, growing by 17% year-on-year, with third-party product distribution growing by 32% [7][8] - Retail loans grew by 11.7% year-on-year, while non-mortgage retail loans grew by 11% year-on-year [18][25] - Priority sector loans grew by 4% sequentially, indicating a growth rate of 16% to 20% [18] Market Data and Key Metrics Changes - Deposit growth averaged around 15% year-on-year, with retail branches contributing approximately 84% of total deposits [4] - The liquidity coverage ratio (LCR) increased to 128, up from 123 in the previous quarter, driven by an increase in granular retail deposits [35] Company Strategy and Development Direction - The company aims to reduce the loan-to-deposit (LDR) ratio to the mid-80s over the next two to three years, adjusting its strategy based on credit growth and deposit growth rates [16][20] - The management emphasized a focus on maintaining asset quality while preparing for potential changes in the credit environment over the next few years [20][42] Management's Comments on Operating Environment and Future Outlook - The management noted an improvement in liquidity but acknowledged that deposit rates remain elevated, impacting credit growth [3] - There is a cautious optimism regarding the future credit environment, with the management expressing confidence in their positioning to capture growth when the cycle turns positive [41][42] Other Important Information - The company is preparing for the IPO of HDB Financial, which is required by regulatory guidelines by September 2025 [12][14] - The management highlighted that the draft regulations from the RBI are still under review, and feedback has been provided [12][37] Q&A Session Summary Question: Is there any securitization income in fees? - The fee income grew by 17% year-on-year, with strong growth in third-party products, but securitization income is not included in fees [7][8] Question: What is the status of contingent provisions? - There was a release of contingent provisions due to regulatory clarifications, which allowed for a reduction in previously reserved amounts [10] Question: What is the impact of RBI's draft circular on HDB Financial? - The management stated that the draft is still under review, and they will provide feedback before the final guidelines are issued [12] Question: What is the trajectory of the liquidity coverage ratio? - The LCR has increased to 128, driven by more granular deposits, and the management is monitoring the situation closely [35][36] Question: What are the thoughts on credit quality? - The management expressed confidence in their asset quality, stating they are well-positioned to manage risks and capture growth opportunities [41][42]

Group 1: Market Overview - As of September 23, 2024, three stocks in the financial sector are showing signs of being overbought, which may concern momentum-focused investors [1] - The Relative Strength Index (RSI) is a key momentum indicator that helps traders assess stock performance by comparing price strength on up days versus down days [2] Group 2: Company-Specific Insights - **ICICI Bank Ltd (IBN)**: The stock has increased approximately 10% over the past month, reaching a 52-week high of $31.60, with an RSI value of 79.28. On the last trading day, shares closed at $31.38 after a 2% gain [3] - **HDFC Bank Ltd (HDB)**: The stock has risen around 8% in the last month, achieving a 52-week high of $67.44. The RSI value stands at 79.06, and shares closed at $65.73 after a 1.4% increase [4] - **Jefferies Financial Group Inc (JEF)**: The stock gained about 6% over the past five days, with a 52-week high of $62.67 and an RSI value of 70.42. However, shares fell 0.4% to close at $62.07 [5]

Investors with an interest in Banks - Foreign stocks have likely encountered both Mizuho (MFG) and HDFC Bank (HDB) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earning ...

Financial Performance - HDFC Bank's total income for the quarter ended March 31, 2024, was ₹89,639 crore, a 66.5% increase from ₹53,851 crore in the same quarter last year[5]. - The net profit for the same quarter was ₹16,512 crore, up 37.2% from ₹12,047 crore year-over-year[5]. - Interest earned increased to ₹71,473 crore for the quarter, compared to ₹45,119 crore in the same quarter last year, reflecting a growth of 58.5%[5]. - Operating profit before provisions and contingencies was ₹29,274 crore, an increase of 57.1% from ₹18,621 crore in the same quarter last year[5]. - The company reported a profit before tax of ₹70,895.3 million, reflecting a significant increase compared to the previous period[2]. - The consolidated profit after tax for the quarter ended March 31, 2024, was ₹176.2 billion, up 39.9% compared to ₹126.0 billion for the quarter ended March 31, 2023[36]. - The net profit for the quarter was ₹17,622.38 crore, up from ₹12,594.47 crore in the same quarter last year, reflecting a year-over-year increase of 40.1%[22]. Asset and Liability Management - The bank's capital adequacy ratio stood at 18.80%, slightly up from 18.39% in the previous quarter[5]. - Gross non-performing assets (NPAs) were reported at ₹31,173 crore, with a gross NPA ratio of 1.24%[5]. - The total assets of the company stood at ₹3,617,623.0 million, showcasing a robust financial position[1]. - The total liabilities of the company were ₹3,617,623.0 million, maintaining a balanced capital structure[1]. - The bank's total assets as of March 31, 2024, were ₹4,030,194.26 crore, compared to ₹2,530,432.44 crore a year earlier, representing a growth of 59.3%[23]. - The total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 18.8% as of March 31, 2024, above the regulatory requirement of 11.7%[50]. Revenue Segments - Retail banking segment revenue reached ₹65,065 crore for the quarter, compared to ₹40,161 crore in the same quarter last year, marking a growth of 62.1%[7]. - The treasury segment reported a revenue of ₹20,553 crore, significantly up from ₹9,483 crore year-over-year[7]. - The insurance business segment generated a revenue of ₹31,001.94 crore for the quarter, with a year-over-year increase as it was not reported in the previous year[23]. - The Treasury segment reported a revenue of ₹20,553.30 crore for the quarter, compared to ₹9,482.54 crore in the same quarter last year, an increase of 116.4%[23]. Cash Flow and Investments - The company reported a net cash flow from operating activities of $3,501.4 million, reflecting a significant increase compared to previous periods[1]. - Cash flows from investing activities were reported at $709.4 million, indicating a strong investment strategy[4]. - The company made investments totaling ₹702,414.9 million, indicating a focus on growth and expansion[1]. - The company’s investments increased to ₹1,005,681.63 crore as of March 31, 2024, compared to ₹511,581.71 crore in the previous year, showing a growth of 96.6%[1]. Shareholder Returns - HDFC Bank's diluted earnings per share (EPS) for the quarter was ₹21.67, compared to ₹21.49 in the previous quarter[5]. - A proposed dividend of ₹19.50 per share was announced, up from ₹19.00 per share in the previous year, subject to approval at the Annual General Meeting[13]. - The company paid dividends during the period totaling $840.4 million, maintaining a strong return to shareholders[7]. - The Board proposed a dividend of ₹19.50 per share for the year, up from ₹19.00 per share in the previous year, subject to approval at the Annual General Meeting[29]. Strategic Initiatives and Future Outlook - The company plans to enhance its market presence through strategic investments and potential acquisitions in the upcoming quarters[2]. - Future guidance indicates a focus on increasing operational efficiency and exploring new market opportunities[2]. - HDFC Bank is focused on technological changes and the marketing of new products as part of its strategic initiatives[62]. - The bank is also monitoring the impact of regulatory changes and economic conditions on its operations and financial performance[62]. Operational Metrics - The Bank's distribution network expanded to 8,738 branches and 20,938 ATMs across 4,065 cities/towns as of March 31, 2024, compared to 7,821 branches and 19,727 ATMs as of March 31, 2023[52]. - The Bank's gross non-performing assets (GNPA) ratio improved to 1.24% as of March 31, 2024, compared to 1.12% as of March 31, 2023[53]. - The Bank's deposits increased to ₹2,376,887.28 crore as of March 31, 2024, compared to ₹1,882,663.25 crore a year earlier, reflecting a growth of 26.3%[1].

Investors interested in Banks - Foreign stocks are likely familiar with Banco Santander (SAN) and HDFC Bank (HDB) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks ...

Exhibit 99 LEADING RESPONSIBLY Delivering Quality Customer Experiences relubinu aut of Builthed Purer Supporting Businesses r Chabling Smart Banking sailiunumon Curientalian and HDFC BANK Integrated Annual Report 2022-23 LEADING RESPONSIBLY HDFC Bank has solidified its position as a trusted financial institution in India. As a responsible leader, the Bank is committed to contributing to Nation Building. By mobilising financial resources and expertise, it actively participates in initiatives that fulfil indi ...