Active Stocks
Fri May 24 2024 15:59:27
  1. Tata Steel share price
  2. 174.80 -0.37%
  1. NTPC share price
  2. 374.85 0.68%
  1. State Bank Of India share price
  2. 828.60 -0.45%
  1. ITC share price
  2. 436.10 -1.16%
  1. Power Grid Corporation Of India share price
  2. 318.50 -0.39%
Business News/ Companies / Company Results/  HDFC Bank Q4 results tomorrow: Net profit likely to jump 30%, NII growth seen at 24% YoY with stable NIM
BackBack

HDFC Bank Q4 results tomorrow: Net profit likely to jump 30%, NII growth seen at 24% YoY with stable NIM

HDFC Bank is likely to post a net profit of ₹15,663 crore in Q4FY24, a growth of 30% from ₹12.047.5 crore in the year-ago quarter, as per average estimates of five brokerages.

HDFC Bank Q4 results are scheduled to be released on Saturday, April 20. (Photo: Reuters)Premium
HDFC Bank Q4 results are scheduled to be released on Saturday, April 20. (Photo: Reuters)

HDFC Bank, the largest private sector lender in India, is expected to report strong Q4 results with a decent growth in net profit led by treasury income. 

HDFC Bank Q4 results are scheduled to be released on Saturday, April 20. 

India’s banking sector is expected to report relatively soft earnings during the January - March 2024 quarter characterized by net interest margin (NIM) pressure, steady loan growth but softer deposit growth, and cost pressures with the impending impact of wage hikes and pension provision for a few, analysts said.

On the positive side, lower credit cost and better recovery trends are expected to support banking sector earnings in Q4FY24.

Read here: Banking sector Q4 preview: PSU Banks to continue to post better earnings growth than private banks, says Elara

HDFC Bank is likely to post a net profit of 15,663 crore in Q4FY24, a growth of 30% from 12.047.5 crore in the year-ago quarter, as per average estimates of five brokerages. The lender’s treasury income for the March 2024 quarter is expected to be at 1,000 crore.

The bank’s net interest income (NII) during the quarter is estimated to grow 24.2% to 29,010  crore from 23,351.8 crore, YoY.

Elara Securities expects steady NIM, but with several variables at play, namely transitionary liquidity requirement (scale has its own challenges while running tight liquidity), changing loan construct, and systemic challenges on deposits, NIM recovery may take longer.

The brokerage firm expects asset quality to see yet another strong print – reflected in curtailed slippages and improving granular recovery trend. HDFC Bank had provided 12.2 billion in AIF exposure in Q3FY24 part of which might be reversed post RBI relaxation. Also, there would be one-off gains pertaining to Credilla.

Also Read: Q4 results preview: Top-line, profit of India Inc. may moderate, say experts; domestic cyclical to lead

Prabhudas Lilladher expects loan growth to be 1.6% QoQ led by retail and CRB portfolio.

“NII could grow by 2.5% although we expect NIM to decline by 12 bps due to sharp decline in LDR QoQ. PPoP may jump by 29% QoQ since Credila stake sale gains were booked in Q4FY24. GNPAs could remain stable at 1.25% while expect provisions might moderate due to likely write-back in AIF provisions," Prabhudas Lilladher said.

HDFC Bank reported a strong business update for the quarter ended March 2024. The private lender saw 55.4% year-on-year (YoY) growth in gross advances to 25.08 lakh crore as of March 31, 2024, from 16.14 lakh crore as of March 31, 2023.

The lender’s domestic retail loans grew by around 108.9% year-on-year (YoY) and around 3.7% quarter-on-quarter (QoQ).

Also Read: HDFC Life Q4 Results: Net profit rises 14.8% to 411 crore; 2 final dividend declared.

HDFC Bank’s deposits increased by 26.4% YoY to 23.80 lakh crore in Q4FY24. Retail deposits growth was 27.8% YoY and 6.9% QoQ, while wholesale deposits grew by 19.4% YoY and around 10.9% sequentially.

“Balance sheet management is improving as provisional numbers for Q4FY24 suggested that deposit accretion was strong at 7.5% QoQ while LDR fell by 610 bps QoQ to 104% due to lower loan growth at 1.6% QoQ. While core earnings growth would be muted for FY24E, as NIM improves in FY26 core PAT may enhance by 19% YoY. Core RoA could scale up to 1.65% in FY26E," brokerage firm Prabhudas Lilladher said.

HDFC Bank share price has not given any significant returns since its merger with HDFC Limited. In the past one month, HDFC share price has gained over 5%, while the stock has fallen 11% this year so far. 

Read all Q4 results here

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 19 Apr 2024, 02:27 PM IST
Next Story footLogo
Recommended For You