HDFC Bank Q3 results: The largest private lender is expected to report a 0-3% increase in net profit for the December quarter, owing to a 6-8% increase in net interest income (NII). Provisions may rise sequentially, but reduce year on year (YoY). The net interest margin (NIM) may remain constant, according to banking analysts, who added that management's comments on credit growth would be closely watched later today.
Axis Securities forecasts HDFC Bank to report a 2.2 percent year-on-year (YoY) increase in net profit to Rs 16,737 crore for the December quarter, up from Rs 16,373 crore in the same quarter last year. NII is expected to increase by 8.1% year on year to Rs 30,778 crore from Rs 28,471 crore last year.
Provisions are expected to be Rs 3,203 crore, up 18.6 percent sequentially from Rs 2,700 crore in the second quarter but down 24 percent from Rs 4,217 crore the previous year. The pre-provision operating profit is estimated to be Rs 25,098 crore.
"Deposit growth was higher than credit growth, and LDR increased moderately; credit growth was much lower than industry growth. Margins are expected to remain constant quarterly, with a minor positive bias. Opex ratios are projected to remain stable.
Slippages may remain under control. The management commentary on deposit accretion, credit growth, and margin improvement trajectory will be monitored," it stated.
Sharekhan forecasts a net profit of Rs 16,264 crore for the third quarter, a 0.7% decrease year on year. It expects NII to rise 7.9 percent year on year to Rs 30,727 crore. Asset quality is projected to remain broadly stable, while net interest margins (NIM) are expected to be flat sequentially. Sharekhan stated that the advancement of NIMs and the outlook for loan and deposit growth will be key indicators.
MOFSL estimates HDFC Bank's net profit at Rs 16,644 crore, up 1.7% year on year. It expects NII to rise 6.5% year on year to Rs 30,335 crore. This firm forecasts cost ratios to remain under control and margins to be basically constant.
Nuvama expects HDFC Bank's NIM to be 3.43 percent in Q3, compared to 3.46 percent in Q2. Profit is expected to rise 3.2 percent year on year to Rs 16,900 crore, while NII rises 7.4 percent year on year to Rs 30,570 crore. Slippage is estimated at Rs 8,200 crore. Slippages as a percentage of lagging loans are estimated at 1.32 percent. Credit cost to total loans is estimated at 0.45%.
