HDFC Bank Ltd Q4 2019 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst : Sir, this is basically on HDB Financial. If you can just share how is the NIM trajectory during the quarter? And also given the Tier 1 issued at 12.8%. So any plans of infusing -- raising new capital in that in the next year? Sashidhar Jagdishan - HDFC Bank Limited - Head of Finance, HR, Legal & Secretarial, Corporate Communications, Admin, Infra, CSR I don't have readymade, but for sure, the NIMs have sort of fallen from the peak.

Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst : Okay. And on the capital piece? Sashidhar Jagdishan - HDFC Bank Limited - Head of Finance, HR, Legal & Secretarial, Corporate Communications, Admin, Infra, CSR On the capital, obviously, he is pretty much comfortable on the total capital ratio. He is also doing a lot of other ways and means of raising liquidity. I think he's pretty much comfortable even from a borrowing perspective or even doing some amount of asset sales very judiciously. If the markets are pretty much buoyant, then maybe I think he will have some amount of plans of raising equity. But I wouldn't say it with certainty. But maybe in the next 12 to 18 months' time. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 20, 2019 / 11:30AM, HDBK.NS - Q4 2019 HDFC Bank Ltd Earnings Call

Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst : Yes.

Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst : Okay. And sir, lastly with respect to the car loans portfolio for HDFC Bank, it has de-grown sequentially, the outstanding amount. So just wanted to understand it is -- just whether it was a market condition wherein the sales were slightly lower or -- and how do either are projected for the next year? Is it that the target segment which we cater to in the car loan, there the growth is likely to remain subdued in the next year? Or is there something else to read into? Sashidhar Jagdishan - HDFC Bank Limited - Head of Finance, HR, Legal & Secretarial, Corporate Communications, Admin, Infra, CSR So sorry, Rohan. I think the initial part of the conversation we couldn't hear clearly. Are you talking about the bank's car loans? I mean, your...

Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst : Yes. Sashidhar Jagdishan - HDFC Bank Limited - Head of Finance, HR, Legal & Secretarial, Corporate Communications, Admin, Infra, CSR Right. As I mentioned to you, the reason for the slowdown is primarily on account of the shift in the behavior -- or the structural shift that we're seeing where the millennials are preferring to hail a cab or do pool sharing, which is one of the strong reasons why this has -- we are seeing a lesser REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 20, 2019 / 11:30AM, HDBK.NS - Q4 2019 HDFC Bank Ltd Earnings Call demand on auto products. Having said that, the cost has also gone pretty much -- we have seen steep rise especially when -- nowadays you have to have 3-year insurance, mandatory insurance also embedded in the cost price. So I think that's gone up almost about 12% to 20%. So people are feeling the pinch and that's one of the reasons why we have a bit of slowdown. But having said that, as a company I think we are -- we believe that we can leverage on our distribution both on the branch side and multiple other distributions that we have laid out, i.e., the virtual relationship management program and some other new channels that we have set up, which will start to fire going forward. I think notwithstanding the underlying momentum, we should sort of still outpace the growth of the market going forward as well.