Kickstarting the Q4 FY23 earnings season for the banking sector, India’s largest private sector lender HDFC Bank is set to release its financial results for the January-March 2023 quarter on Saturday, April 15. According to analysts, the bank is likely to post strong double-digit growth, around 22 per cent, in net profit amid healthy loan growth and better business.
Brokerage firm Prabhudas Lilladher expects HDFC Bank Q4 net profit to jump 21.8 per cent YoY to Rs 12,245.4 crore. Its net interest income (NII) is expected to increase 32.5 percent YoY (up 8.8 per cent QoQ) to Rs 24,999.9 crore.
Another brokerage Elara Securities Expects HDFC Bank to report a 24.4 per cent YoY rise in profit to Rs 12,507 crore for the March quarter compared with Rs 10,055 crore in the same quarter last year. Net interest income is seen rising 28.2 percent to Rs 24,204 crore from Rs 18,872 crore YoY.
It said, “As reported in provisional updates, business momentum has turned out strong with loan growth of 16.9 percent YoY and 6.2 percent QoQ. Deposit growth of 20.8 percent YoY and 8.7 percent QoQ was higher than our estimates. We are yet to align reported numbers to show outperformance.”
Emkay Global expects NIM for the quarter to come in at 4.3 percent, up 5 basis points 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 while expecting profit for the quarter to come in at Rs 12,037 crore, up 19.7 percent YoY.
In the previous December 2022 quarter, HDFC Bank reported an 18.50 per cent jump in its standalone net profit to Rs 12,259 crore. On a consolidated basis, the largest private sector bank’s net profit stood at Rs 12,698 crore, up 19.9 per cent over the quarter ended December 31, 2021, according to a BSE filing.
Its net interest income (interest earned less interest expended) for the December 2022 quarter grew 24.6 per cent to about Rs 22,987.8 crore from Rs 18.443.5 crore for the quarter ended December 31, 2021. Core net interest margin was at 4.1 per cent on total assets, and 4.3 per cent based on interest earning assets.
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