INSUBCONTINENT EXCLUSIVE:
NEW DELHI: HDFC Bank is all set to report its September quarter results on Saturday
Analysts largely expect the private lender to post strong loan growth for the quarter
Profit growth is seen in the range of 17-20 per cent
Asset quality is expected to remain stable, but analysts expect margins to contract due to a rise in cost of funds.
Brokerage Motilal Oswal
Securities is factoring in a loan growth of 20 per cent, mainly driven by retail loans
are expected to contract due to a rise in cost of funds
NII is expected to grow at 13 per cent YoY
Other income growth is expected to moderate to 11 per cent YoY, factoring on lower trading gains
Fee income should remain healthy, the brokerage said.
Prabhudas Lilladher expects the bank to continue to report steady earnings growth of
likely gain traction implying continued market share gains
"Core revenue momentum will likely improve (fee income is a key monitorable)
Asset quality trend will likely remain benign," said Edelweiss Securities
Motilal Oswal Securities estimates gross non-performing assets (NPAs) at 1.3 per cent and profit after tax at Rs 4,920 crore, up 18 per
cent YoY.
Opex growth would be lower than total income growth at 8.5 per cent YoY, aided by the bank's strong digital initiatives, it said
The scrip on Friday closed at Rs 1,965.80 on BSE, down 0.46 per cent.
