HDFC Bank share price in focus ahead of Q2 results today; here’s what to expect
Read HDFC Bank Q2 Results Live Updates here The creation of excess liquidity could affect the net interest margin of HDFC Bank in Q2FY24. However, margins should bounce back in H2FY24 as credit growth picks up and liquidity is utilized, analysts said. In its quarterly business update, HDFC Bank reported a robust 57.7% growth in its gross advances at ₹23.54 lakh crore as of September 30, 2023, rising from ₹14.93 lakh crore last year.
(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Its deposits aggregated to approximately ₹21.73 lakh crore in Q2FY24, a growth of around 29.9% over ₹16.73 lakh crore as of September 30, 2022. Motilal Oswal Financial Services expects HDFC Bank’s margins to moderate sequentially and loan growth to remain in check. Asset quality for the merged entity is expected to increase, while margins are likely to moderate sequentially.
The brokerage expects HDFC Bank’s net profit to grow 39.4% YoY to ₹14,780 crore, while NII to rise 33.6% YoY to ₹28,090 crore. The bank is expected to post operating profit of ₹22,790 crore, up 31%, YoY. Also Read: HDFC Bank Q2 Results Preview: Margin contraction seen after merger; here’s what to expect According to analysts at Prabhudas Lilladher, Gross NPAs could see an improvement of 6 bps QoQ to 1.34% while they expect provisions to remain flat.
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