HDFC Bank Q4 Result Preview: Profit seen rising over 50% YoY; asset quality stable

The lender’s net profit is seen rising upwards of 50% YoY, according to the average of estimates given by five brokerages.

, the difference between interest earned and interest expended, is likely to grow 22% YoY, as per an average of four brokerages.

Loan growth for the reporting March quarter is slower as the focus shifts towards deposit mobilization. The traction for deposits is likely to remain healthy.

Here's what to expect from HDFC Bank's Q4 earnings:

Motilal Oswal

Margins are likely to remain broadly stable. for the merged entity is expected to remain broadly stable. Guidance for business growth and earnings trajectory to be key monitorables.

Kotak Equities

We should see better traction on deposit growth in 4Q (seasonally strong as well) and we are building 7% quarter-on-quarter (year-on-year numbers are not comparable). We are also building in slower loan growth (3% quarter-on-quarter), leading to an improvement in the CD ratio. NIM flat QoQ. Non-interest income boosted by the stake sale of the education finance subsidiary (Credila).

Axis Securities

Deposit growth improves QoQ. Margins are likely to remain stable sequentially. Stable Opex ratios and support from stake sale to non-interest income are expected to keep PPOP growth healthy. Asset quality to remain stable; Credit costs expected to be slightly lower QoQ. Key Monitorables: (1) Management commentary on Business Growth (2) Margin improvement Trajectory hereon (positive commentary expected).

ICICI Securities

HDFC Bank is likely to report flattish NII QoQ, but PPOP/PAT growth QoQ is likely to be strong, driven by huge treasury gains. We would be closely monitoring the commentary on near-term deposits growth and opex trends.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)