HDFC Bank reported a strong set of numbers, which indicated that a bulk of the impact of COVID-19 on India's premier bank, could be behind.

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Brokerages said that the collection efficiency of the bank improved to pre-COVID levels for non-moratorium loans and 95 percent for loans under moratorium.

They added that the bank has made sufficient provisions to strengthen its balance sheet and prevent it from any shocks from stressed assets.

Besides, fee income growth surprised positively while NIM too bottomed out in Q2.

Going forward, restructuring accounts could be in lower single digits of 1-2 percent of loans, brokers said.

In the above backdrop, almost all brokerages have increased their target price based on rollover to H1FY23E book value. HDFC Bank remains the top pick amongst almost all the analyst. Here's a look at brokers' latest price targets on the stock.

(Edited by : Nazim)

First Published:Oct 19, 2020 1:02 PM IST