Debt Mutual Fund Strategy

Classification - Restricted Strong corporate and Banks Balance Sheets and rising capacity utilisation creating condition for revival in private capex... Debt to Equity Ratio (%) Trend Debt to Equity (D/E) Ratio - BSE 500 Indian Corporates have been deleveraging their balance sheets over the last few years, setting the stage for Capex recovery 100% 95% 90% 8556 85% 81% 87% 81% 8096 7896 7856 7556 Capacity utilisation in the manufacturing sector is now above its long-term average, indicating the need for fresh investments for additional capacity creation 75- 80% 75% 70% 65% 60% 55% 50% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 76% 6396 57% 70- Source: Canara Robeco Mutual Fund Per cent 65- 60- Approximate Private Sector Capex Rs. Bn 2500 55- 2000 RBI expects the Private sector to continue its recovery in FY23 50- Capex in Rs. Billion (Bn) 2000 1760 45- 1430 1500 1000 756 16 500 0 FY 19 FY20 FY21 FY22 Source:- RBI Confidential/Restricted Source: RBI. 01 02030401 02 03 0421 020304010203040102030401 2018-20 2017-18 2018-19 CU Long-term average 2020-21 2021-22 2022-23 CU (Seasonally adjusted) HDFC BANK RESEARCH Classification - Restricted HDFC BANK We understand your world

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