Kotak Institutional Equities expects HDFC Bank’s Q2 internet revenue to rise 44.5% YoY to ₹15,326.9 crore, whereas internet curiosity revenue (NII) to develop 40% YoY to ₹29,428.5 crore.  It expects gross NPL ratio to be marginally larger as reported within the merged stability sheet. Near-term focus can be the progress of NIM and the impression of PSL (FY2025).

Q2FY24 would be the first quarter submit the merger and thus, there may be prone to be a good diploma of volatility over our estimates. Key variables to observe: (1) opening price of funds, (2) yield on loans and (3) impression of ICRR to grasp the NIM profile of the merged entity, the brokerage stated.

The Bank Nifty index traded 0.2% decrease on Monday forward of the announcement of Q2 outcomes by HDFC Bank later right this moment. The main laggards on the Bank Nifty right this moment have been AU Small Finance Bank, IndusInd Bank, HDFC Bank, Kotak Mahindra Bank and ICICI Bank that declined between 0.2% to 1.5%. 

On the flip facet, Bandhan Bank, Axis Bank, Punjab National Bank, Federal financial institution, amongst others have been the highest gainers on the index.

HDFC Bank Q2 internet revenue is estimated to rise 53.6% YoY to ₹16,292.5 crore, whereas internet curiosity revenue (NII) might develop 40.6% YoY to ₹29,552.5 crore. Pre-provision working revenue (PPOP) is anticipated to leap 42.2% to ₹24,737.5 crore, as per Yes Securities. 

Sequential mortgage progress has been 4.9%. NII progress will likely be materially slower than mortgage progress because of price of deposits catch up and extra liquidity. Consequently, NIM will likely be materially decrease sequentially. Sequential payment revenue progress will broadly match mortgage progress. Opex progress will barely lag mortgage progress. Slippages can be broadly secure on sequential foundation. Provisions will likely be broadly secure because of prudential provisioning, it stated.

The July-September quarter (Q2) earnings of the Indian banking sector might present respectable progress on a year-on-year (YoY) foundation with non-public and PSU banks prone to submit earnings progress of about 25 per cent and 20 per cent YoY, respectively, although there may very well be some compression in internet curiosity margin (NIM), stated a report from Motilal Oswal Financial Services.

Apart from the numbers, administration commentaries on unsecured mortgage progress and margins, traction in deposits and opex traits, the traction in payment revenue and treasury outlook are anticipated to be in focus within the banking sector’s Q2 scorecard. Read here

HDFC Bank’s deposits aggregated to roughly ₹21.73 lakh crore as of September 30, 2023, a progress of round 29.9% over ₹16.73 lakh crore as of September 30, 2022.

The financial institution’s present account and financial savings account (CASA) deposits in Q2FY24 rose 7.6% to roughly ₹8.17 lakh crore from ₹7.59 lakh crore final yr. CASA ratio stood at round 37.6% in comparison with 45.4% final yr.

HDFC Bank reported a strong 57.7% progress in its gross advances at ₹23.54 lakh crore as of September 30, 2023, rising from ₹14.93 lakh crore final yr. The financial institution’s home retail loans grew by round 111.5% year-on-year (YoY), whereas business & rural banking loans grew by round 29.5% YoY and company & different wholesale loans grew by 8% YoY, HDFC Bank stated in a regulatory submitting on October 4.

The lender stated that after the merger with the guardian firm HDFC Ltd, the financial institution reported highest ever dwelling mortgage disbursals at round ₹48,000 crore.

This is a progress of 14.0% over the quarter ending June 30, 2023, and a progress of 10.5% over the quarter ending September 30, 2022, it added. Non-individual loans of the erstwhile HDFC Limited (eHDFCL) aggregated to roughly ₹1.02 lakh crore as of September 30. Read here

HDFC Bank shares have remained one of many worst performing banking shares this yr. HDFC Bank share worth has fallen 8% within the final one month, whereas it has fallen 7% in three months. The inventory is down over 6% year-to-date (YTD).

In the final one yr, HDFC Bank shares have gained over 6.3% and risen over 27% in three years.

HDFC Bank’s mortgage progress is anticipated to be sturdy, rising by 4.9% QoQ led by different retail and CRB portfolios. However, internet curiosity revenue (NII) may decline 4.9% because of decrease yields resulting in pre-provision working revenue (PPoP) fall of 8.2% QoQ. We count on internet curiosity margin (NIM) to say no by 41 bps on account of further liquidity because of the merger. GNPAs may see an enchancment of 6 bps QoQ to 1.34% whereas we count on provisions to stay flat, brokerage agency Prabhudas Lilladher stated.

It sees HDFC Bank’s Q2FY24 internet revenue at ₹13,640.8 crore, NII at ₹27,358.3 crore and NIM at 3.62%.

HDFC Bank share worth opened decrease on Monday forward of the announcement of Q2 earnings later right this moment. HDFC Bank shares opened at ₹1,536.70 apiece on the BSE as in comparison with Friday’s shut of ₹1,536.75. However, the inventory witnessed promoting stress and was buying and selling over half a p.c decrease. HDFC Bank shares have been buying and selling 0.74% decrease at ₹1,525.35 apiece.

On a like-for-like foundation, HDFC Bank’s sequential mortgage progress has been 4.9%. Net Interest Income (NII) progress will likely be materially slower than mortgage progress because of price of deposits catch up and extra liquidity. Consequently, NIM will likely be materially decrease sequentially. Sequential payment revenue progress will broadly match mortgage progress. Opex progress will barely lag mortgage progress. Slippages can be broadly secure on a sequential foundation. Provisions will likely be broadly secure because of prudential provisioning, in keeping with Yes Securities.

According to Emkay Global Financial Services, HDFC Bank is anticipated to be damage by sharp margin contraction submit the merger. Higher deposit progress coupled with merger or regulatory drag ought to weigh on margins and, thus, profitability. The financial institution is anticipated to report larger NPAs on a merged foundation, Emkay Global stated.

As per the brokerage, HDFC Bank might report internet revenue of ₹15,279.2 crore, internet curiosity revenue of ₹27,874 crore and internet curiosity margin of three.8% in Q2FY24.

HDFC Bank share worth will stay in deal with Monday forward of the announcement of September quarter outcomes. HDFC Bank, the biggest non-public sector lender within the nation, is ready to announce its earnings for the second quarter of FY24 right this moment, 16 October, 2023.

HDFC Bank share worth has fallen over 5% year-to-date (YTD) and is down greater than 6% within the final one month. On Friday, HDFC Bank shares ended 0.85% decrease at ₹1,536.75 apiece on the BSE. Read here

The general banking sector is anticipated to see wholesome credit score progress within the quarter ended September, however margins are prone to compress because of price catch-up and the impression of Incremental Cash Reserve Ratio (ICRR).

Analysts count on the creation of extra liquidity may have an effect on the online curiosity margin of HDFC Bank in Q2FY24. However, margins ought to bounce again in H2FY24 as credit score progress picks up and liquidity is utilized. Read full report here

Creation of extra liquidity may have an effect on Q2FY24 internet curiosity margin (NIM), though margins ought to bounce again in H2FY24E as credit score progress picks up and liquidity is utilized, brokerage agency Prabhudas Lilladher stated. While core earnings progress can be muted for FY24E (3.5% YoY), as NIM and mortgage progress normalize core PAT might witness a 20.7% CAGR over FY24-26E.

HDFC Bank is anticipated to be damage by sharp margin contraction submit the merger, Emkay Global Financial Services stated.

“After a pointy margin downtrend previously two quarters, the financial institution expects margin contraction to be contained in Q2. This coupled with contained provisions is anticipated to help profitability. Slippages are prone to stay largely flat QoQ; there are not any indicators of incremental stress as of now,” Emkay Global stated.

HDFC Bank’s internet curiosity revenue in Q2FY24 is estimated at ₹27,874 crore, up 8.6% YoY and down 3.6% QoQ. Net curiosity margin (NIM) is anticipated to be at 4.1%, down 5 bps sequentially and up 9 bps YoY. The financial institution is prone to submit a internet revenue of ₹6,045 crore within the September quarter.

HDFC Bank, the biggest non-public sector lender within the nation, is ready to announce its earnings for the second quarter of FY24 on Monday, 16 October, 2023. This would be the first quarterly monetary results of HDFC Bank after it was merged with mortgage lender Housing Development Finance Corporation (HDFC) efficient July 1.