HDFC Bank Q1 Preview: Standalone PAT seen up 27% YoY; merged entity numbers in focus

economictimes.indiatimes.com:

HDFC Bank will release its earnings for the June quarter on Monday, and this will be the first one after its mega-merger with parent Housing Development Finance Corporation. The financials will be released for the merged entity by the lender. The merger came into effect on July 1.

On Friday, the bank said that it has allocated over 311 crore new shares of the bank to shareholders of the merged entity HDFC. As per the merger scheme, every HDFC shareholder has got 42 shares of HDFC Bank for every 25 shares held. The allotted equity shares would be listed on the stock exchanges and rank pari passu in all respects with the existing equity shares of HDFC Bank, it said.

Last week, HDFC Bank shared provisional numbers of the merged entity for the June quarter, which showed that gross advances rose 13% year-on-year (YoY) to Rs 22.45 lakh crore and about 1% sequentially. The merged entity’s deposits were approximately Rs 20.64 lakh crore as of June 30, up 16% from the year-ago period. The merged entity's average liquidity coverage ratio for the quarter was around 120% on a proforma basis.

However, the estimates given by analysts for HDFC Bank do not take into account the merger. For HDFC Bank, the standalone net profit is seen rising nearly 27% YoY to Rs 11,630 crore, according to the average of estimates given by 14 brokerages. The net interest income — the difference between interest earned and interest expended — is expected to have grown 22.5% to Rs 23,871 crore.