HDFC Bank Q3 results: The largest private lender is likely to report a 0-3 percent rise in net profit for the December quarter, while net interest income (NII) will grow 6-8 percent. Provisions may rise sequentially, but decline on a year-on-year (YoY) basis. Net interest margin (NIM) may remain stable, banking analysts said, adding that management commentary on loan growth will be closely watched 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, as against Rs 16,373 crore in the same quarter last year. NII is seen growing 8.1 percent YoY to Rs 30,778 crore from Rs 28,471 crore yoy.
Provisions were seen at Rs 3,203 crore, up 18.6 percent from Rs 2,700 crore in Q2 but down 24 per cent from Rs 4,217 crore a year ago. Pre-provision operating profit was seen at Rs 25,098 crore. “Deposit growth was better than loan growth, LDR improved marginally; loan growth was significantly lower than industry growth. Margins are likely to remain stable quarter-on-quarter with a slight positive bias.
Operating expense ratio is expected to remain stable. Slippages may remain under control. Management commentary on deposit growth and resultant loan growth and margin improvement trajectory will be monitored,” it said.
Sharekhan sees third quarter net profit at Rs 16,264 crore, down 0.7 percent YoY compared to the same quarter last year. It forecasts NII to grow 7.9 percent to Rs 30,727 crore compared to the same quarter last year. Asset quality is expected to remain broadly stable, with net interest margin (NIM) expected to remain flat sequentially.
Key monitorables will be NIM progress and loan and deposit growth scenarios, Sharekhan said. MOFSL sees net profit for HDFC Bank at Rs 16,644 crore, up 1.7 percent YoY. It expects NII to grow 6.5 percent YoY to Rs 30,335 crore. The brokerage expects cost ratios to remain under control and margins to remain broadly stable.
Nuvama sees HDFC Bank’s NIM at 3.43 percent in Q3 against 3.46 percent in Q2. It expects profit to grow 3.2 per cent y-o-y to Rs 16,900 crore and NII to grow 7.4 percent y-o-y to Rs 30,570 crore; credit cost seen at 0.45 percent of total loans
