HDFC Bank Q3 results: The largest private lender is likely to report a 0-3 per cent growth in net profit for the December quarter on a 6-8 per cent rise net interest income (NII). Provisions may rise sequentially but fall on year-on-year (YoY) basis. Net interest margin (NIM) may stay stable, banking analysts said adding that the management commentary on credit growth would be keenly followed later today.
Axis Securities expects HDFC Bank to report a 2.2 per cent year-on-year (YoY) rise in net profit at Rs 16,737 crore for the December quarter compared with Rs 16,373 crore in the same quarter last year. NII is seen rising 8.1 per cent YoY to Rs 30,778 crore from Rs 28,471 crore YoY. Provisions are seen at Rs 3,203 crore, rising 18.6 per cent sequentially over Rs 2,700 crore in Q2 but falling 24 per cent over the year-ago's Rs 4,217 crore. Pre-provision operating profit is seen at Rs 25,098 crore.
"Deposit growth was better than credit growth, LDR improved marginally; credit growth was significantly below the industry growth. Margins are likely to remain stable QoQ with a slight positive bias. Opex ratios are expected to remain steady. Slippages may remain under control. The management commentary on deposit accretion and resultant credit growth and Margin improvement trajectory will be watched," it said.
Sharekhan sees Q3 net profit at Rs 16,264 crore, down 0.7 per cent YoY. It sees NII rising 7.9 per cent YoY to Rs 30,727 crore. Asset quality is expected to remain broadly stable, net interest margin (NIM) are expected to be flat sequentially. Key monitorables would be the progress of NIMs and loan & deposit growth outlook, Sharekhan said.
MOFSL sees net profit for HDFC Bank at Rs 16,644 crore, up 1.7 per cent YoY. It sees NII rising 6.5 per cent YoY to Rs 30,335 crore. This brokerage expects cost ratios to remain under control and margins to stay broadly stable.
Nuvama sees HDFC Bank's NIM at 3.43 per cent in Q3 against 3.46 per cent in Q2. It sees profit rising 3.2 per cent YoY to Rs 16,900 crore and NII climbing 7.4 per cent YoY to Rs 30,570 crore. Slippage is seen at Rs 8,200 crore. Slippages as percentage of lagged loans is seen at 1.32 per cent. Credit cost to total loans is seen at 0.45 per cent.