Abhishek Kothari, banking analyst, Quant Broking expects an earnings downgrade on Bank of Baroda.
Discussing the results, Manish Ostwal, Head of Research & Senior Analyst - Financials, KR Choksey Institutional Securities, said the bank has posted a strong set of numbers.
India's second largest private sector lender HDFC Bank met street expectations with the second quarter net profit rising 20.1 percent to Rs 2,380 crore compared to Rs 1,982 crore in same quarter last year supported by higher other income and net interest income by impacted by higher provisions.
Net interest income is expected to increase by 1.2 percent Q-o-Q (up 16.9 percent Y-o-Y) to Rs 5233.4 crore, according to ICICIdirect.com.
Net interest income is expected to increase by 2.4 percent Q-o-Q (up 18.3 percent Y-o-Y) to Rs 5297.8 crore, according to Motilal Oswal.
Net interest income, the difference between interest earned and interest expended, may grow by 18 percent to Rs 5,275 crore in the quarter ended September 2014 from Rs 4,476.5 crore in corresponding quarter of last fiscal.
As the earnings season winds up and most of India‘s notable corporates have posted their quarterly results updates, net profits were slightly ahead of estimates, according to projections by brokerage firm Kotak, but there was â€œlimited evidence of a meaningful upgrades to earningsâ€.
HDFC reports steady Q3 earnings
Religare has kept HDFC bank as its preferred pick among private banks. It has rated it a 'buy' with a target price of Rs 760. JP Morgan has rated HDFC Bank 'overweight' with a target price of Rs 750 while Citi has kept a 'neutral' outlook with a target price of Rs 750.
HDFC Bank‘s quarterly net profit grew 25 percent year-on-year to Rs 2,326 crore from Rs 1,859 crore while net interest income rose 22 percent to Rs 4,635 crore from Rs 3,799 crore during the same period.
HDFC Bank reported an in line set of numbers and a recovery from Q2 â€“ Ekta finds out more.
Net interest income (growth of 15 percent in Q2, the lowest in last seven quarters), net interest margin and loan growth are expected to bounce back in the third quarter.
According to Dolat Capital, net interest income of HDFC Bank is expected to increase by 6.7 percent Q-o-Q (up 20 percent Y-o-Y) to Rs 4778 crore.
According to ICICIdirect.com, net interest income of HDFC Bank is expected to increase by 1.9 percent Q-o-Q (up 14.6 percent Y-o-Y) to Rs 4563.6 crore.
According to Motilal Oswal, net interest income of HDFC Bank are expected to increase by 4.7 percent Q-o-Q (up 17.8 percent Y-o-Y) to Rs 4689.2 crore.
The bank‘s restructured assets in Q2 stood at Rs 1,031 crore against Rs 690 crore in the first quarter and the slippages were at Rs 618 crore in Q2 against Rs 680 crore in Q1.
On asset quality front alone, small or midcap PSU banks would witness a slightly better quarter, Vishal Goyal, ED, Banks & Fin Research, UBS said.
Experts have given mixed reaction of the State Bank of India earnings. While Vaibhav Agrawal, Angel Broking believes the result was in line with expectations, Suruchi Jain of Morningstar continues to keep high uncertainty rating on the stock.
Top pecking order in the private banking space for Religare Capital Markets is HDFC Bank, followed by Yes Bank, IndusInd Bank and then ICICI Bank over Axis Bank, says Siddharth Teli.
Angel Broking is very positive on Axis Bank after it posted a better-than-expected results for the quarter ended in September.
CNBC-TV18 poll had estimated net profit at Rs 1,963 crore and net interest income at Rs 4,576 crore for the quarter.
Analysts expect loan growth between 18-20 percent while deposit growth is expected to be in line with loan growth.
Siddharth Teli of Religare Capital Markets says the numers posted by IndusInd Bank were fairly good both on asset quality front as well as margins.
According to Kotak Securities, HDFC Bank to report a 8.4 percent growth quarter-on-quarter (growth of 28.2 percent year-on-year) in net profit at Rs 1,999.3 crore.
According to Prabhudas Lilladher, HDFC Bank may report a 5.1 percent growth quarter-on-quarter (growth of 24.2 percent year-on-year) in net profit at Rs 1,938.2 crore.