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No cause for concern despite HDFC's below-par show; stock falls 1.5%

Housing loan demand remains strong, asset quality under control with healthy provisioning in place

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Shreepad S Aute
Moderation in Housing Development Finance Corporation's (HDFC) asset quality in the December 2018 quarter (Q3) — mainly from the non-individual segment — coupled with slower growth in the loan book, impacted investor sentiment. The stock shed 1.5 per cent to close at Rs 1,918 on a day when majority of the non-banking financiers were trading in the negative.

The company’s net profit of Rs 2,114 crore in Q3 was lower than the Rs 2,210 crore estimated by analysts. However, there is not too much cause for concern.

Lalitabh Shrivastawa, AVP (Research) at Sharekhan, believes the lender’s balance sheet strength, as

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First Published: Jan 29 2019 | 10:46 PM IST

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