With HDFC Bank all set to announce its fiscal third quarter earnings on Wednesday (January 22), brokerage firms and analysts said that the banking major is expected to post 8.1-8.4 per cent growth in its Q3 Net Interest Income (NII). The NII range is seen between Rs 30,778 crore and Rs 30,887 crore. Experts said that HDFC Bank is expected to report a subdued quarter with a single-digit profit growth during Q3FY25, weighed down by modest loan growth and stagnant margins
According to a Moneycontrol poll, HDFC Bank is expected to record Q3 net profit at Rs 16,650 crore and NII is estimated at Rs 30,690 crore during the quarter in review. Further, another poll by Bloomberg stated that HDFC Bank is set to report profit at Rs 16,596 crore.
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Earlier in a regulatory filing on December 16, HDFC Bank had said, “We wish to inform you that a meeting of the Board of Directors of HDFC Bank Limited is scheduled to be held on Wednesday, January 22, 2025 to inter-alia consider and approve the unaudited standalone and consolidated financial results of the Bank for the quarter and nine months ending December 31, 2024. We also wish to inform you that the window for trading in securities of the Bank shall remain closed from Wednesday, December 25, 2024 to Friday, January 24, 2025 (both days inclusive) for the designated employees and their immediate relatives pursuant to the Bank’s share dealing code.”
What are key expectations?
HDFC Bank, per its Q3 business update, recorded a 3 per cent YoY loan growth as it concentrated on improving its loan-to-deposit ratio (LDR). Deposits, meanwhile, grew by 16 per cent YoY to Rs 2.5 lakh crore. Elara Capital said HDFC Bank is expected to post softer momentum in loan growth. The brokerage firm said, “The bank, as per some media articles, seems to have sold down its portfolio, which will impact loan growth. The key to watch will be deposit traction and the composition in the form of ‘retail and others’.”
The Bank’s Net Interest Margin (NIM) is projected to remain flat at 3.6 per cent as the management focused on reducing its credit-to-deposit (CD) ratio below 100 per cent following its merger with HDFC Ltd.
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