Q3FY24 Preview: HDFC Bank: NII seen at Rs. 285,870 million, PAT at Rs. 159,874 million

15 Jan 2024 , 03:27 PM

Result date: January 16, 2023

Recommendation: Buy

Target price: Rs. 1,930    

(Source: IIFL Research)

HDFC Bank could witness strong performance across most key metrics during the December 2023 quarter. Advances are likely to grow by 15-16% over the year-ago quarter, while growth in deposits could be weaker. The Bank’s Net Interest Income or NII could grow 17% over the year-ago quarter.

Net Interest Margins or NIMs could decline sequentially owing to increase in cost of deposits. Operating expenses as well as asset quality are likely to remain stable. A key monitorable will be likely bottoming out of the Bank’s NIM.

The Bank’s Profit After Tax or PAT could grow 20% over the year-ago quarter.

Important management insights to watch out for:

• Updates on business growth across segments/markets post-merger
• Margin drivers
• Asset quality trends

Rs. Million	December 2023 estimates	QoQ change	YoY change
Net Interest Income	285,870	4.40%	17.37%
Profit After Tax	159,874	0.07%	20.27%

Source: Brokerage reports