Q1FY24 Preview HDFC Bank: NII seen at Rs. 244,081 million, PAT at Rs. 110,177 million

17 Jul 2023 , 06:28 AM

Result date: 17^th July, 2023

Recommendation: Buy

Target price: Rs. 1,960

(Source: IIFL Research)

HDFC Bank could post 25.30% growth in Net Interest Income (NII) as compared to the year-ago quarter. This will be driven by healthy growth across retail, corporate and commercial loans.

The Bank’s Net Interest Margin (NIM) could come in at 4% and stay largely stable amid greater focus on deposit accretion.

Asset quality and credit costs of the bank are expected to remain stable, which in turn, will aid its overall profitability. The Bank’s agricultural loan book though may report higher slippages.

Its Profit After Tax (PAT) could grow 19.8% as compared to the year-ago quarter.

Important management insights to watch out for:

• Outlook on business growth 
• Update on earnings trajectory after the merger with HDFC

Rs. Million	June 2023 estimates	YoY change	QoQ change
NII	244,081	25.30%	4.52%
PPOP	185,798	20.90%	(0.22)%
Profit After Tax (Rs. mn)	110,177	19.80%	(8.54)%

Source: Brokerage Reports