Q4FY23 Preview: HDFC Bank: NII seen at Rs 23,736 crore, PAT at Rs 12,209 crore

14 Apr 2023 , 05:23 AM

Result date: 15^th April, 2023

Recommendation: Buy

Target price: Rs 1,960

(Source: IIFL Research)

 

HDFC Bank is likely to post good growth in Net Interest Income (NII) on the back of healthy loan growth. Continued traction across most key segments (retail, corporate, commercial) is a key positive. Momentum in fee income is likely to continue in the quarter. 

Net Interest Margin (NIM) could remain largely stable on a sequential basis, despite increase in MCLR rates.

Strong topline growth, coupled with steady cost ratios could support pre-provisioning operating profit during the year. Asset quality could remain stable amid flattish credit costs.

The Bank’s Profit After Tax or PAT could increase 21.4% over the year-ago quarter.

Important management insights to watch out for:

• Growth in retail loans
• Update on merger with HDFC
• Asset quality in Agri/Unsecured book
• Performance of Credit Cards
• Growth momentum in fee income

Rs. Crore	March 2023 estimates	YoY change	QoQ change
Net Interest Income	23,736	25.8%	3.3%
Pre Provisioning Operating Profit	19,418	18.7%	2.1%
Profit After Tax	12,209	21.4%	2.8%

Source: Brokerage Reports