IIFL estimates the bank’s net revenues to soar to Rs.1,247 crore, growing at 35% yoy and 6% qoq.
As per IIFL’s forecast, the bank’s net profit for Q4 FY16 is expected to surge to Rs.653 crore, at a rate of 32% yoy and 12% qoq.
Net Interest Margin is likely to be at 3.9%, with a yoy rise of 18 bps.
According to IIFL, Q4 FY16 will continue to reflect the disparity in loan growth between the private and public banks. Most of the large private banks are estimated to report impressive loan growth ranging between 20-30% yoy. An established and sizeable retail lending franchise, widening distribution, high capital base and prudent aggression is enabling private banks to outgrow the system thus garnering market share at fast clip. On the other hand, most PSU Banks are expected to report lack luster credit growth of <10% yoy due to their high reliance on corporate loans, weak capital position and a guarded approach underpinned by prevailing asset quality issues.
Our preview coverage universe of 374 companies, representing ~75% of India’s equity market cap is expected to report 4.2% yoy drop in net profit in Q4 FY16. On a qoq basis, profits will rise by 17% on account of low base of preceding two quarters, which had witnessed sequential PAT declines.
Other key Q4 results on April 21 include Hindustan Zinc, Supreme Industries, and Cyient Ltd.