NEW DELHI: Indias second largest private sector lender HDFC Bank will report its quarterly earnings on Saturday, where it is expected to log an above-average loan growth, a stable asset quality and 20-23 per cent year-on-year growth in profit.
Investors will be keenly tracking loan growth in agri portfolio.
They may also track SME and retail books, in addition to trends in digital banking and other initiatives, analysts said.
ICICI Direct expects the bank to report a 22.5 per cent YoY growth in profit after tax (PAT) at Rs 5,877 crore.
It sees gross non-performing assets (NPA) at 1.3-1.4 per cent.
Another brokerage Motilal Oswal Securities pegged profit at Rs 5,800 crore, up 21 per cent.
This brokerage expect a 16 per cent growth in other income, led by healthy fee income and stable treasury performance.
Analysts are baking in a net interest income (NII) growth of around 24 per cent; they see margin in 4.2-4.4 per cent range.
ICICI Direct feels that a hike in deposit rate would be offset by an increase of 5 basis points in MCLR, thereby keeping margins stable at 4.2-4.3 per cent.
HDFC Bank, meanwhile, may see strong growth in deposits.
With QoQ decline in credit-deposit ratio, we estimate a marginal downward bias in NIMs, though support will flow from rising share of unsecured lending, Edelweiss Securities said.
The performance of the agri portfolio would be tracked as slippages in the sector were higher in Q3FY19, it said.