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MUMBAI : Private sector lender HDFC Bank is expected to post a net profit of 7,818.2 crore in the three months to December, 5% higher than 7,416.48 crore reported in the same period last year, according to an average of estimates by 15 analysts polled by Bloomberg.

The bank will declare its Q3 FY21 results on Saturday.

Analysts at Emkay Research said overall business momentum for HDFC Bank remains healthy, compared to the industry. A structurally better cost-income ratio and high provisioning buffer (0.7% of loans in Q2) should help absorb the ensuing moderate asset-quality risk, leading to continued healthy return ratios, it said.

“However, in the wake of a spate of recent management churn and adverse events, including misconduct in auto business and new card acquisition suspension, we believe that the new top management has a task cut out to overcome these hurdles and sustain its historic management premium," Emkay said in a report on 6 January.

HDFC Bank recently informed the exchanges that its loan book grew about 16% year-on-year (y-o-y) at 10.8 trillion in Q3 FY21, which Emkay said was mainly driven by retail (festive pick-up) and continued momentum in working capital corporate loans.

ICICI Direct said on 8 January that HDFC Bank is expected to report a net interest income (NII) of 16,258.8 crore in the December quarter, up 12.8% y-o-y.

“We expect margins to be stable at 4.3%. Other income may see improvement sequentially with profit after tax growth expected to be 10% YoY to 8,205 crore. Asset quality may be stable due to lower slippage led by standstill but restructuring numbers to be watched," ICICI Direct said.

Meanwhile, analysts at Motilal Oswal believe that HDFC Bank has shown robust traction in the corporate portfolio, thus compensating for the softness in retail lending.

“Over the first half of FY21, the corporate segment contributed entirely to the overall loan growth, raising its share to 52% of total loans. It continues to focus on lending to high-rated corporates, which has enabled sharp decline in risk-weighted assets/total assets to about 65% (as against 75% in FY19)," Motilal Oswal said on 7 January.

Shares of HDFC Bank closed at 1,466.35 on the BSE on Friday, down 0.12% from its previous close.

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