Should you buy, hold or sell HDFC Bank and ICICI Bank stocks post Q4 show? Check what Anil Singhvi says

Even as the IT sector delivered weak performance in the Q4 amid global headwinds, banking majors ICICI Bank and HDFC Bank have delivered remarkable performance during the reporting quarter. For the reporting quarter, standalone profit at ICICI Bank grew 1 per cent year-on-year to Rs 12,629 crore, while NII also came in higher-than-estimates at Rs 21,193 crore.

Net interest margin (NIM)- the profitability metric also stood largely steady year-on-year at 4.41 per cent.

The asset quality at the lender also improved substantially with a  gross net profit assets ratio at 1.67 per cent during the reporting quarter as against 2 per cent in the previous December quarter.

Similarly, HDFC Bank also beat estimates both on the profitability front as well as net interest income. For the March quarter, the private sector lending behemoth reported profit at Rs 17,616 crore, up 6.6 per cent. While, the net interest income or NII at the lender also grew 10.3 per cent to Rs 32065.8 crore as against Rs 29,076 crore in the same quarter of the previous year. The same was estimated at Rs 30,760 crore for the March quarter.

Here's what Anil Singhvi suggests on ICICI Bank and HDFC Bank post Q4 earning

Zee Business Anil Singhvi on ICICI Bank said the bank posted strong Q4 results on all parameters. Also, NIM logged an expansion during the review quarter, while RoA improved. He added that the private sector lender is a foreign institutional investors' (FIIs) favourite and he advised a buy on dip for an investment better than HDFC Bank. 

Buy ICICI Bank futures says Anil Singhvi

The expert has recommended a buy on ICICI Bank Futures for  a target of Rs 1,419, Rs 1,427 and Rs 1,437 with the stop loss pegged at Rs 1,390. The highest suggested target implies gains of over 2 per cent.

On HDFC Bank, Anil Singhvi said the lender recorded strong deposit growth. Asset quality also remained strong during the review quarter. 10 percent pre-provisioning operating profit is very good. 

He further added that the direction remains positive for investment in HDFC Bank. Also, he pointed that the stock is trading at almost 2.45 times of book value.

Buy HDFC Bank futures says Anil Singhvi

Maintaining a similar stance, Anil Singhvi recommends a buy in HDFC Bank futures for a target of Rs 1,925, 1,934 and Rs 1,947. The stop loss suggested for the trade is 1,874.