Notwithstanding its large size, HDFC Bank is gaining market share at an accelerated pace, which will aid sustainable high earnings growth
The bank reported 20.6 percent year-on-year growth in Q2 FY19 profit to Rs 5,005.73 crore, driven by net interest income (NII), other income and operating income.
Asset quality is also expected to remain stable for the quarter on sequential basis.
While the core mortgage business is on a stable growth trajectory, the financial conglomerate stands to gain from equally strong performance of its subsidiaries. Investors cannot ignore this financial powerhouse.
We expect HDFC Bank’s considerable moat to aid sustainable high future earnings growth, notwithstanding its large size, making it a must own core holding among Indian equities
We expect HDFC Bank’s considerable moat to aid high and sustainable future earnings growth, notwithstanding its large size. This makes it a must-own stock among Indian equities.
The bank posted 20.3 per cent growth in its standalone net profit at Rs 4,799.3 crore for the quarter ended on March 31, 2018, compared to year ago period.
Net Interest Income is expected to increase by 20.8 percent Y-o-Y (up 6.1 percent Q-o-Q) to Rs. 10,942.8 crore, according to ICICI Direct.
The private sector lender reported profit growth of 20.1 percent for quarter ended December 2017, with slight increase in asset quality and strong loan growth.
Investors got to stay invested in these stocks despite despite the optically expensive valuation.
Analysts said if loan growth comes above 20 percent, domestic loan growth above 23 percent, net interest margin above 4.2 percent and slippages below Rs 2,500 crore for the quarter then that would be taken positively by the Street.
In an interview to CNBC-TV18, Rajiv Mehta of IIFL Wealth shared his views and readings on ICICI Bank's Q2 numbers and also spoke about specific stocks.
Despite a 34 percent drop in net profit at Rs 2,058 crore from a year ago, the Mumbai-based bank saw its gross non-performing assets (NPAs) in the three month period July-September decreased even as it spiked from a year-ago period.
HDFC Bank is set to announce its Q2FY18 numbers today. Rajiv Mehta of IIFL Wealth Management shared his views and outlook of what to expect from the numbers.
Analysts feel if loan growth comes above 20 percent, domestic loan growth above 20 percent and net interest margin above 4.2 percent then that will be taken positively by the Street.
While optically, the aggregate earnings may not appear as a shocker, it nevertheless hides underlying weakness and a clear loss of momentum.
Expectations were running low on account of pre-GST implementation adjustments in the quarter, and overall, the Nifty earnings have not resulted in any incremental negative surprise.
Analysts feel if loan growth comes above 15 percent, domestic loan growth above 20 percent and net interest margin above 4 percent then that will be positive.
Vishal Goyal, Executive Director-Leading Banks and Financial Research at UBS India shared his outlook on what could unfold in the Q1 results for the banking universe.
Analysts say if the company reports loan growth above 13 percent and net interest margin above 4 percent then that may be considered positive by the Street.
HDFC Bank profit in third quarter grew by 15 percent to Rs 3,865.3 crore compared with Rs 3,356.84 crore in year-ago period. Net interest income increased 17.5 percent year-on-year to Rs 8,309 crore in the quarter gone by.
HDFC Bank's profit is likely to grow 12.3 percent year-on-year to Rs 3,770.7 crore and net interest income is seen rising 16.1 percent to Rs 8,203.8 crore in the quarter ended December 2016, according to average of estimates of analysts polled by CNBC-TV18.
Siddharth Purohit of Angel Broking says he is dissapointed by the loan growth but he says apart from that the numbers look really good.
HDFC Bank, the country's second largest private second lender, is likely to report a 20 percent growth in Q2 profit at Rs 3,443 crore on yearly basis, according to consensus estimates.
Net Interest Income is expected to increase by 6.5 percent Q-o-Q (up 24 percent Y-o-Y) to Rs 8284.3 crore, according to KR Choksey.