India’s largest private bank HDFC Bank’s third quarter results will come today. It is expected that in the third quarter ended December 31, 2021, double digit growth can be seen in HDFC Bank’s profit and interest income. At the same time, its asset quality may remain stable. Along with this, there may be a decline in provisioning.
Let us inform that before the quarterly results on January 14, the shares of HDFC Bank saw a rise of more than 14 percent. The bank has shown a rally of more than 8 per cent so far from the recent low on December 20. However, it has underperformed the benchmark indices, Bank Nifty and Nifty 50 during this period. In the period from December 20 till now, Bank Nifty has given returns of more than 11 per cent while Nifty has given returns of around 9 per cent.
Earlier this month, HDFC Bank had given provisional figures of its business, according to which the bank’s advances grew by 16.4 per cent year-on-year and 5.1 per cent quarterly in the December quarter and stood at Rs 12.6 crore in the December quarter. Used to be.
Similarly, during this period, retail loan growth has seen a growth of 13.5 per cent year-on-year and 4.5 per cent quarterly. At the same time, the corporate loan growth book has seen a growth of 7.5 percent on a yearly basis and 4.5 percent on a quarterly basis.
How will the performance of the bank in the December quarter, let’s see what is the opinion of brokerage houses on this
ICICI Direct says that in the December quarter, HDFC Bank’s interest income may see an increase of 12.7 percent year-on-year, while its margin may remain at 4.3 percent.
The growth of interest income of the bank in the December quarter of Kotak Institutional Equities may remain at 14 per cent year-on-year. The interest income will get the benefit of increase in the loan amount. The brokerage house also said that the operating profit growth of the bank during this period may remain at 12 per cent year-on-year, while the Net Interest Margin (NIM) may remain unchanged at 4 per cent.
ICICI Direct says that the bank’s asset quality may remain stable in the December quarter. Gross NPAs may remain at 1.3 per cent during this period. With this, the provisioning may come down to Rs 3,528 crore. At the same time, a growth of 14 percent can be seen in PAT on an annual basis.
Kotak Institutional Equities expects a decline in the gross non-promoting growth (NPL) ratio of the bank in the December quarter due to lower slippages (2 per cent) and better recovery. Kotak Institutional Equities also says that in the December quarter, the bank’s profit may see a growth of 17.2 percent.