India's largest lender by market value, HDFC Bank, is all set to report its corporate earnings for the January-March 2023 quarter on Saturday, April 15. The financial results come at a time when the RBI has paused key interest rates for now
Healthy loan growth and continued traction in business across segments is expected to help HDFC Bank report strong double-digit growth in net profit for the quarter ended March and kickstart the earnings season for the banking sector on a bullish note
HDFC Bank’s net profit is seen rising 21% year-on-year (YoY), according to brokerages. Net interest income, which is the difference between interest earned and interest expended, is seen growing 33% on year
Brokerage firm Prabhudas Lilladher sees HDFC Bank Q4 net profit jumping 21.8% YoY to Rs 12,245.4 crore. Net interest income (NII) is expected to increase 32.5% YoY to Rs 24,999.9 crore
Emkay Global expects NIM for the quarter to come in at 4.3%, up 5bps QoQ. It expects HDFC Bank to report healthy profitability, "led by healthy NII growth/contained provisions. Slippages are expected to come off on a QoQ basis due to lower stress from the agri portfolio", it said
On the asset quality front, Kotak Institutional Equities expects HDFC Bank's gross non-performing asset ratio to be stable sequentially, led by lower slippages, better recovery, and a strong loan growth outlook
Brokerage ICICIdirect has pegged the bank’s GNPA ratio at 1.21% for the quarter and NNPA at 0.32%. It expects provision to be elevated at Rs 3,361 crore, building in HDFC Ltd merger buffers
In a recent business update, HDFC Bank said its loans stood at Rs 16,00,500 crore at the end of March 31, 2023, marking a QoQ growth of 6.2%. Its advances or loans expanded 6.5% sequentially, taking into account gross transfers through interbank participation certificates and bills
-Outlook for both loan growth and deposits will be eyed against the backdrop of the interest rate scenario
-Growth in credit cards business and way forward
-Margin trajectory for FY24
-Commentary on asset quality
-Update on the timeline of the merger of HDFC Ltd
Ahead of the Q4FY23 result, HDFC Bank shares ended half a percent higher at Rs 1,695 on NSE on Thursday. In the last 6 months, HDFC Bank's share price has rallied more than 17%, and 21% in the last 12 months