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Home / Companies / Company Results /  HDFC Bank June quarter profit seen at 7,915 crore

MUMBAI: Private sector lender HDFC Bank is expected to post a net profit of Rs7,915.3 crore for the three months ended June, 19% higher than the Rs6,659 crore reported for the same period last year, according to an average of estimates by 15 analysts polled by Bloomberg.

The bank will declare its Q1 FY22 results on Saturday.

Analysts at Emkay Global said while HDFC Bank’s growth trajectory remains moderate, it should be able to deliver 20% year-on-year (y-o-y) profit growth.

“Subdued growth in net interest margin (NIM) and fees should weigh on pre-provisioning operating profit (PPoP) but contained provisions should lead to reasonable profitability. Fresh slippages to remain elevated given higher stress in commercial vehicle, two-wheelers, and small and medium enterprise (SME) portfolio," Emkay Global said in a note on 9 July.

HDFC Bank recently informed stock exchanges that its deposit base was at about Rs13.46 trillion as on 30 June, a growth of 13.2% year-on-year (y-o-y). Its low-cost current account and savings account (Casa) deposits grew 28.2% y-o-y to Rs6.12 trillion in Q1 FY22.

ICICI Securities said on 10 July that HDFC Bank was expected to report a net interest income (NII) of 17,727 crore for the June quarter, up 13% y-o-y.

“With 1.3% sequential growth in advances, HDFC Bank continues to outperform industry. Loan growth sustains at 14% y-o-y growth (compared to industry average of 6%) suggesting market share gain. Growth was primarily led by commercial and rural and business banking segments. Retail loan growth was modest as retail disbursements were down 30% sequentially but up 3 times on y-o-y basis," the ICICI Securities report said.

Meanwhile, analysts at Motilal Oswal believe HDFC Bank has shown robust traction in its corporate portfolio, which compensated for the softness in retail lending.

“We remain watchful of the impact of the second wave on total asset quality, particularly on the SME, unsecured, and agriculture books. Thus, we expect slippages to stay elevated over first half of FY22. The bank holds additional contingency provisions, which would limit the impact on profitability," the Motilal Oswal report on 7 July said.

It added that a strong liability franchise would support margins and therefore, the bank is well-placed to gain incremental market share on both the asset and liability fronts.

Shares of HDFC Bank on BSE closed at Rs1,521.7 apiece on Friday, up 0.08% from previous close.

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