HDFC Bank Q1 net seen up 32% to Rs 1869 cr: Emkay

Emkay has come out with its first quarter (April-June) earnings estimates for banking sector. The brokerage house expects HDFC Bank to report a 1 percent degrowth quarter-on-quarter (growth of 32 percent year-on-year) in net profit at Rs 1869 crore.

Net interest income (NII) is expected to decrease by 0.6 percent Q-o-Q (up 22.6 percent Y-o-Y) to Rs 4271 crore, according to Emkay. Emkay's report on HDFC Bank HDFC Bank's NII to witness 23 percent Y-o-Y on back of 22 percent Y-o-Y growth in loan portfolio. Steady 18 percent+ Y-o-Y growth in operating profit and adequate provision will ensure a net profit growth of 30 percent Y-o-Y+. Ability to generate 4 percent+ margins, CASA proportion and asset quality provides comfort. Key things to watch: Commentaries on retail portfolio and delinquencies especially in CV space.