HDFC Bank Q4 Results Preview: Net profit likely to grow 23% to Rs 12,300 crore on steady asset quality
HDFC Bank Q4 Results Preview: HDFC Bank - Indias largest lender by market value - will report its financial results for the quarter ended March 2023 on Saturday, April 15. Heres what to expect from the banking giants quarterly report card.
HDFC Bank Q4 Results: HDFC Bank — India's largest lender by market value — is all set to report its corporate earnings for the January-March 2023 period on Saturday, April 15. The financial results of the banking behemoth come at a time when the RBI has paused key interest rates for now but hinted at possible increases going forward in its battle to tackle sticky inflation without damaging economic growth.
According to Zee Business research, HDFC Bank is likely to report a standalone net profit of Rs 12,300 crore for the three-month period, which translates to an increase of 22.3 per cent compared with the corresponding period a year ago.
HDFC Bank's net interest income (NII) — the difference between interest earned and interest paid — is pegged at Rs 24,000 crore, up 27.2 per cent on a year-on-year basis, according to the research.
Its asset quality — gauged by the amount and the proportion of bad loans in total loans — is estimated to have remained steady on a sequential basis.
Analysts at Zee Business peg the lender's gross non-performing assets (NPAs) — or bad loans — as a percentage of total loans at 1.2 per cent for the three months to March 2023, down by three basis points compared with the previous quarter. They estimate HDFC Bank's net bad loans to remain flat at 0.33 per cent.
HDFC Bank's net interest margin (NIM) — a key measure of profitability for financial lenders — is likely to remain flat or worsen on a quarter-on-quarter basis. The bank's NIM stood at 4.3 per cent for the quarter ended December 2022.
HDFC Bank Q4 business update
In a business update released last week, HDFC Bank said its loans stood at Rs 16,00,500 crore at the end of March 31, 2023, marking quarter-on-quarter growth of 6.2 per cent.
Its advances — or loans — expanded 6.5 per cent sequentially, taking into account gross of transfers through interbank participation certificates and bills, according to a company statement. Read more on HDFC Bank's Q4 update
How did HDFC Bank perform in the quarter ended March 2022?
HDFC Bank reported a 22.8 per cent year-on-year jump in net profit to Rs 10,055.2 crore for the final quarter of the financial year 2021-22. Its net interest income grew 10.2 per cent to Rs 18,872.8 crore, according to a regulatory filing.
HDFC Bank shares: Historical performance
HDFC Bank shares lost 1.1 per cent of their value during January-March 2023, though better than a 4.1 per cent fall in the headline Nifty index.
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