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HDFC Bank Q2 PAT may rise 28% at Rs 1991.5cr: Motilal Oswal

According to Motilal Oswal, HDFC Bank to report a 8 percent growth quarter-on-quarter (growth of 27.7 percent year-on-year) in net profit at Rs 1,991.5 crore.

October 15, 2013 / 09:47 AM IST
 
 
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Motilal Oswal has come out with its second quarter (July-September) earnings estimates for the banking sector. The brokerage house expects HDFC Bank to report a 8 percent growth quarter-on-quarter (up 27.7 percent year-on-year) in net profit at Rs 1,991.5 crore.


Net interest income is expected to increase by 1.5 percent Q-o-Q (up 20.2 percent Y-o-Y) to Rs 4,485.1 crore, according to Motilal Oswal.


Motilal Oswal's Report on HDFC Bank:


On the back of buoyant retail demand, HDFCB is expected to deliver healthy loan growth of 18 percent+ Y-o-Y. Deposit growth is also expected to be in line with loan growth at 17 percent Y-o-Y.


Margins are expected to moderate by 10bp+ Q-o-Q but will remain steady on a Y-o-Y basis. Resultantly, NII growth is expected to be 2 percent Q-o-Q and 20 percent Y-o-Y.


Ex-forex, fee income growth is expected to remain healthy at 17 percent. However, contribution from trading income is expected to be
negligible.


Asset quality is expected to remain healthy, though stress in few segments of retail loans has increased, which needs to be watched.


Hence, we build provisions of Rs 3.2 billion, compared to Rs 3 billion (which also included Rs 750 million for floating provisions) in 2QFY13.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

first published: Oct 15, 2013 09:47 am

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