HDFC Bank will report its December quarter results on Saturday. The private lender has already released updates on credit and deposit growths for the quarter. Analysts largely expect the bank to log a 15 per cent-plus growth in profit on a 18-22 per cent growth in net interest income (NII). Net interest margin (NIM) is expected to improve sequentially. Analysts said HDFC Bank reported soft loan and deposit growths and that its growth in NII and PPOP is likely to lag that of ICICI Bank and Axis Bank’s growth.
Profit growth
Sharekhan said HDFC Bank delivered healthy advances growth of 19 per cent YoY, but loan growth moderated sequentially to 1.8 per cent from 6.1 per cent in the previous quarter. This brokerage expects profit for the bank to jump 16.1 per cent YoY to Rs 12,007 crore compared with Rs 10,342 crore in the corresponding quarter last year. Nuvama Institutional Equities sees profit for the bank at Rs 12,050 crore, up 16.5 per cent YoY. Emkay Global sees HDFC Bank profit at Rs 11,891 crore, up 15 per cent YoY.
NII growth
Sharekhan sees NII for HDFC Bank surging 22.2 per cent to Rs 22,612 crore from Rs 18,443 crore in the same quarter last year. Nuvama Institutional Equities sees NII at Rs 22,370 crore, up 21.3 per cent. Emkay Global sees HDFC Bank’s NII at Rs 21,754 crore, up 18 per cent YoY.
PPOP growth
Sharekhan expects pre-provision operating profit for HDFC Bank to grow 13.2 per cent YoY to Rs 16,776 crore. Nuvama Institutional Equities sees core PPoP at Rs 18,570 crore, up 18 per cent YoY.
NIM expansion
Nuvama Institutional Equities sees HDFC Bank’s NIM at 4.2 per cent compared with 4.1 per cent in the year-ago quarter. Emkay Global sees NIM at 4.3 per cent.
GNPA, slippages
Motilal Oswal Securities gross NPA as percentage of total advances at 1.2 per cent compared with 1.2 per cent in September and 1.3 per cent in the year-ago quarter. Net NPA is seen at 0.2 per cent for the quarter. Asset quality in agri and unsecured book and slippages will be key monitorables, Motilal Oswal Securities said adding that the commentary around credit cards, traction in fee income, and the merger with HDFC are key monitorables.
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