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