HDFC Bank is expected to report a 11.5 percent YoY increase in Net Interest Income (NII) at Rs 30,306 crore in the July-to-September quarter. Further, the lender is estimated to report a net profit of Rs 16,570 crore, up 3.7 percent YoY in Q2FY25, as per mean estimates of seven brokerage firms.
HDFC Bank will announce its Q2FY25 earnings on October 19.
Net Interest Margins (NIMs) are likely to remain stable on a Quarter-on-Quarter (QoQ) basis with a positive bias. Gross Non-Performing Assets (GNPA) are expected to grow 1.28 percent on a QoQ basis, as per PL Capital.
Credit/deposit growth: As per Motilal Oswal Financial Services, loans are expected to grow at a moderate pace of 7.9 percent YoY, while deposits are estimated to grow by 13.7 percent YoY in Q2FY25. Slower credit growth and elevated operating expenses as the bank continues to build franchisee could keep earnings in check, said Emkay Global Financial Services.
Pre-provision Operating Profit (PPOP): PPOP could increase by 4.3 percent due to higher NIM and other income, said PL. Capital. The brokerage firm further said that provisions could increase by 15 percent due to ageing and prudent accounting practices.
Key things to watch: Commentary on deposit accretion, credit growth and margins.
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