HDFC Bank Q4FY22 Preview: NII seen at Rs20,104 crore, PAT at Rs10,651 crore

15 Apr 2022 , 08:54 AM

Result date: 16^th April, 2022

HDFC Bank will declare its Q4 results on Saturday and is likely to witness healthy performance on all key parameters. The bank’s advances grew about 21% over the year-ago quarter and 9% sequentially. Loan growth was fueled by healthy traction in commercial, wholesale and retail banking segments. This augurs well for net interest income (NII) which is estimated to grow 17.5% over the year-ago quarter and 9% sequentially. Notwithstanding lower treasury income, fee income is expected to grow at a decent pace.

Net interest margin is likely to hold on to the 4% level witnessed in Q3FY22. Overall slippages could moderate, aiding asset quality.

However, asset quality trends in its unsecured loans will be keenly watched for.

Profitability during the quarter will be supported by continued cost rationalization.

PAT is likely to grow 30.1% over the year-ago quarter and 3% sequentially.  

Important management insights to watch out for:
·         Update on integration of HDFC
·         Growth outlook for each segment
·         Commentary on the credit card business
 

Rs. crore	March 2022 estimates	QoQ change	YoY change
Net Interest Income	20,104	9.0%	17.5%
Pre-Provisioning Operating Profit	18,079	7.8%	16.4%
Profit After Tax (PAT)	10,651	3.0%	30.1%

Source: Brokerage reports