In January-March quarter, HDFC Bank is expected to report similar growth to Q3. Profit may jump 20.9 percent year-on-year to Rs 2,812 crore and net interest income is seen rising 20.6 percent to Rs 5,971 crore in the quarter ended March 2015, according to a CNBC-TV18 poll.
Provisions need to be closely watched as in Q3FY15, provisions spiked 44 percent Y-o-Y and 23 percent Q-o-Q to Rs 560.43 crore.
Fee income of the country's second largest private sector lender is another important component that will be watched. Fee income has been picking up, but is still expected to lag loan growth, say analysts.
In Q3, fee income growth improved from 13.4 percent in Q2FY15 to 14.7 percent, the highest in 8 quarters. But normalized growth was around 12 percent for fee income in Q3, driven by a few one offs.
Net interest margin is expected to be in range of 4.2-4.4 percent against 4.4 percent in Q3.
Analysts feel asset quality trends may continue being stable with gross non-perfoming liability around 1 percent, which is similar to Q3.
Loan growth is estimated at 18-20 percent during March quarter against 17 percent in December quarter and 22 percent in September quarter in Q2FY15. The fall in loan growth in Q3 was due to wholesale segment that fell to 22 percent growth against 36 percent on sequential basis. Retail loan growth was 12 percent in Q3 but commercial vehicle and SME continued to be weak.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
