HDFC Bank expected to post net profit of ₹6,409 crore in Q21 min read . Updated: 17 Oct 2020, 08:31 AM IST
- The bank's advances grew 16% y-o-y to around ₹10.37 trillion as on 30 September, while deposits grew 20% y-o-y to around ₹12.29 trillion in the same period
Mumbai: Private sector lender HDFC Bank is expected to post a net profit of ₹6,409 crore in the three months to September, marginally higher than ₹6,345 crore in the same period last year, according to an average of estimates by 15 analysts polled by Bloomberg. The bank will declare its Q2 FY21 results on Saturday.
Analysts at Emkay Research believe HDFC Bank’s net interest margin (NIM) is likely to remain stable on a sequential basis. The bank, Emkay said, may prefer to make some additional provisions which should keep profits under check and its slippages could be higher on a quarter-on-quarter (q-o-q) basis on recognition of some pain upfront in the non-moratorium book for Q2.
According to Emkay, HDFC Bank’s net interest income (NII) will be around ₹15,981 crore in the September quarter of FY21, an increase of 18.2% on a year-on-year (y-o-y) basis. The private sector lender is also expected to post an operating profit of ₹13,606 crore in Q2, up 16.3%, y-o-y.
In a notification to stock exchanges on 5 October, the bank said its advances grew 16% y-o-y to around ₹10.37 trillion as on 30 September. Its deposits grew 20% y-o-y to around ₹12.29 trillion in the same period.
Meanwhile, ICICI Securities said in a research report on 9 October that Q2FY21 has witnessed sequential uptick in disbursements and collections, though trends are expected to be divergent across players and product segments. The report said players with robust liability franchise, marginal stress baggage and strong capital position like HDFC Bank would fare better.
“Sounds more confident and resilient, and flow from moratorium 2.0 pool into restructuring is expected to be much contained. Also, prudently it would prefer recognising stress upfront if servicing ability is in question. We are, therefore building in stable credit cost," ICICI Securities said in its report.
Shares of HDFC Bank on BSE closed at ₹1,199 on Friday, up 2.55% from its previous close.