HDFC Bank is all set to come up with Q3FY22 numbers on Saturday. It is expected that the private lender will throw good numbers as hinted by the business update from the company, which saw strong growth in loan book.  

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As per the Q3 business update from the HDFC Bank, loan growth jumped from 15.4 per cent to 16.4 per cent YoY in October-December quarter.  

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Speaking about the Q3 business update, analyst Devanshi Ashar at Zee Business said the business update was encouraging and the bank is all geared up to put up good show on Saturday.  

Beside good loan growth, retail loan was sitting comfortably around 13 per cent, she said. "Also, rural growth and corporate growth too witnessed good jump. All these things will help Net Interest Income (NII) as the results could show gains of up to 13% in NII and the profit is expected to grow by 15 per cent in the quarter ended December 31, 2021," Devanshi said.  

Slippages from unsecured books are expected to rise to some extent this time around too. "However, the bank has good buffer and provision numbers were already seen increasing in the quarterly update.

Due to this buffer with the bank, profits are not expected to be affected," Ashar said.  

Gross NPA are likely to come down to 1.3 per cent from 1.4 per cent, while net NPAs are likely to be stable at 0.4 per cent. Margins are likely to slightly go up on quarter-on-quarter basis, while credit cost are likely to come down to some extent.  

"Overall, numbers are likely to be encouraging in this quarter. Credit card numbers, commentaries, disbursement in time to come and recovery trend will be crucial," added Ashar.