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HDFC Bank Q3 result preview | Asset quality, slippages, commentary around credit cards and fee income traction are key things to watch out for.
Net Interest Income (NII) is expected to increase by 13.7 percent Y-o-Y (up 4.9 percent Q-o-Q) to Rs. 18,559.2 crore, according to Motilal Oswal.
HDFC Bank Q2 Preview: With loan recovery, asset quality is likely to improve or remain stable compared with the previous quarter.
Net Interest Income (NII) is expected to increase by 11.5 percent Y-o-Y (up 3.4 percent Q-o-Q) to Rs. 17,583.2 crore, according to Motilal Oswal.
Net Interest Income (NII) is expected to increase by 10.8 percent Y-o-Y (up 2.7 percent Q-o-Q) to Rs. 17,473.7 crore, according to Prabhudas Lilladher.
Net Interest Income (NII) is expected to increase by 6 percent Y-o-Y (down 3 percent Q-o-Q) to Rs. 16,636 crore, according to Sharekhan.
Net Interest Income (NII) is expected to increase by 12.1 percent Y-o-Y (up 2.6 percent Q-o-Q) to Rs. 17,558.5 crore, according to Emkay Research.
Net Interest Income (NII) is expected to increase by 9.7 percent Y-o-Y (up 1.7 percent Q-o-Q) to Rs. 17,191 crore, according to ICICI Direct.
Net Interest Income (NII) is expected to increase by 13.2 percent Y-o-Y (up 3.6 percent Q-o-Q) to Rs. 17,728.4 crore, according to Motilal Oswal.
Pre-provision operating profit is also expected to grow in the range of 15-20 percent in the March quarter YoY.
Net Interest Income (NII) is expected to increase by 9.5 percent Y-o-Y (up 2.1 percent Q-o-Q) to Rs 16,655 crore, according to Sharekhan.
Net Interest Income (NII) is expected to increase by 15.6 percent Y-o-Y (up 7.7 percent Q-o-Q) to Rs. 17,578.2 crore, according to Prabhudas Lilladher.
Cost to income ratio is expected to be back to 38-39 percent in the short term but in the medium term, the management intends to bring it down again.
The loan loss provisions could see a marginal increase of 2-3 percent year-on-year, but sequentially the same may decline 15-16 percent, according to Kotak and Prabhudas Lilladher.
Pre-provision operating profit growth could be in the 10-12 percent range in Q2 due to lower other income
Asset quality may slightly weaken during the quarter on sequential basis, while the provisions may remain elevated due to COVID-19.
In corporate loan, over 80 percent of the disbursal during the quarter was for the tenor less than 1 year.
Sharekhan expects a marginally increase in GNPA, overall credit costs are well within range.
Motilal Oswal, which has a buy call on the stock with a target of Rs 1,500 per share, has said HDFC Bank's operating performance remained strong in a tough environment.
Most brokerages expect the asset quality to weaken marginally during the quarter due to agri exposure, but overall it remain under control.
We expect Nifty EPS to grow by 14 percent for FY20 and clock in an EPS figure of Rs 554 for FY20.
Asset quality is likely to be stable in September quarter compared to June quarter with moderation in slippages.
Net Interest Income (NII) is expected to increase by 13.9 percent Y-o-Y (up 0.8 percent Q-o-Q) to Rs. 13,398 crore, according to KR Choksey.
Net Interest Income (NII) is expected to increase by 14.5 percent Y-o-Y (up 1.3 percent Q-o-Q) to Rs. 13,463.8 crore, according to ICICI Direct.