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Synopsis : HDFC Bank projected a 29.9% YoY rise in net profit to Rs 15,653 crore, with NII expected to surge by 24.8% to Rs 29,144 crore. Gains from Credila sales to be booked this quarter.
HDFC Bank's Q4 results: Sharekhan predicts a 59.2% YoY profit increase to Rs 19,185 crore, with NII rising 25% to Rs 29,213 crore. Non-interest income to rise, driven by HDFC Credila stake sale.
HDFC Bank, India's largest private lender, is expected to announce a 30-60% YoY increase in net profit for the March quarter. This growth is driven by heightened non-interest income from the HDFC Credila stake sale. Analysts anticipate a 25% YoY rise in net interest income (NII), with net interest margin (NIM) likely to remain stable sequentially. While provisions are projected to decrease sequentially, they are expected to increase YoY, analysts noted.
Axis Securities anticipates HDFC Bank to register a 30.8% YoY surge in net profit to Rs 15,755 crore, up from Rs 12,047 crore in the previous year. NII is forecasted to climb by 25.7% YoY to Rs 29,356 crore, with pre-provision operating profit expected to rise by 31% YoY to Rs 24,393 crore. Provisions for the quarter are estimated at Rs 3,418 crore, reflecting a 19% QoQ decrease but a 27.3% increase over the year-ago quarter. Axis Securities predicts stable margins sequentially, with healthy PPOP growth driven by stable Opex ratios and support from non-interest income. Asset quality is expected to remain stable, with slightly lower QoQ credit costs.
Sharekhan forecasts a 59.2% YoY increase in profit for the world's sixth-largest bank, reaching Rs 19,185 crore, with NII projected to grow by 25% to Rs 29,213 crore. NIMs are expected to remain flat QOQ, with focus on NIMs and loan/deposit growth outlook. Non-interest income is expected to rise, driven by HDFC Credila stake sale.
Motilal Oswal Securities sets a target of Rs 1,950 for the stock, expecting stable margins and asset quality in the March quarter. Guidance on business growth and earnings trajectory will be closely watched.
The brokerage anticipates HDFC Bank to announce a 29.9% YoY increase in net profit to Rs 15,653 crore, with net interest income (NII) expected to surge by 24.8% to Rs 29,144 crore. Nuvama noted that the bank should book the Rs 9,600 crore gain from Credila sales in this quarter.
