HDFC Bank Q2 Results Live Updates: Net profit may rise, margins likely to contract

HDFC Bank Q2 Results Live: HDFC Bank share price in red ahead of Q2 earnings

HDFC Bank share price traded lower Monday afternoon ahead of the release of Q2 results later today. HDFC Bank shares made an intraday low of ₹1,522.00 apiece, falling 0.95% from previous close of ₹1,536.75 apiece on the BSE. The stock was trading 0.39% lower at ₹1,530.80 per share.

HDFC Bank Q2 Results Live: Q2 could be a bottoming out quarter for HDFC Bank: Emkay

For HDFC Bank, Q2 could be a bottoming out quarter and should be a key beneficiary of margin recovery from Q3, which coupled with reasonable valuations among peers should drive up the stock, Emkay Financial Services said. 

Higher deposit growth coupled with merger/regulatory drag should weigh on margins and, thus, profitability. The bank is expected to report higher NPAs on a merged basis, it added.

HDFC Bank Q2 Results Live: HDFC Life Q2 net profit grows 15% YoY to ₹378 crore

HDFC Life Insurance Company on Friday reported a consolidated net profit of ₹378 crore for the second quarter of FY24, registering a growth of 15% from ₹329 crore in the same quarter last fiscal.

The company’s net premium income in Q2FY24 increased 13% to ₹14,797 crore from ₹13,138 crore in the year-ago period. Read here

HDFC Bank Q2 Results Live: PAT seen up 44.5%, NII up 40% YoY: Kotak Equities

Kotak Institutional Equities expects HDFC Bank’s Q2 net profit to rise 44.5% YoY to ₹15,326.9 crore, while net interest income (NII) to grow 40% YoY to ₹29,428.5 crore.  It expects gross NPL ratio to be marginally higher as reported in the merged balance sheet. Near-term focus would be the progress of NIM and the impact of PSL (FY2025).

Q2FY24 will be the first quarter post the merger and thus, there is likely to be a fair degree of volatility over our estimates. Key variables to watch: (1) opening cost of funds, (2) yield on loans and (3) impact of ICRR to understand the NIM profile of the merged entity, the brokerage said.

HDFC Bank Q2 Results Live: Bank Nifty index trades lower

The Bank Nifty index traded 0.2% lower on Monday ahead of the announcement of Q2 results by HDFC Bank later today. The major laggards on the Bank Nifty today were AU Small Finance Bank, IndusInd Bank, HDFC Bank, Kotak Mahindra Bank and ICICI Bank that declined between 0.2% to 1.5%. 

On the flip side, Bandhan Bank, Axis Bank, Punjab National Bank, Federal bank, among others were the top gainers on the index.

HDFC Bank Q2 Results Live: Net profit likely to be at ₹16,292.5 crore

HDFC Bank Q2 net profit is estimated to rise 53.6% YoY to ₹16,292.5 crore, while net interest income (NII) may grow 40.6% YoY to ₹29,552.5 crore. Pre-provision operating profit (PPOP) is expected to jump 42.2% to ₹24,737.5 crore, as per Yes Securities. 

Sequential loan growth has been 4.9%. NII growth will be materially slower than loan growth due to cost of deposits catch up and excess liquidity. Consequently, NIM will be materially lower sequentially. Sequential fee income growth will broadly match loan growth. Opex growth will slightly lag loan growth. Slippages would be broadly stable on sequential basis. Provisions will be broadly stable due to prudential provisioning, it said.

HDFC Bank Q2 Results Live: Expect decent YoY earning growth in Q2 despite NIM compression for banking sector

The July-September quarter (Q2) earnings of the Indian banking sector may show decent growth on a year-on-year (YoY) basis with private and PSU banks likely to post earnings growth of about 25 per cent and 20 per cent YoY, respectively, even though there could be some compression in net interest margin (NIM), said a report from Motilal Oswal Financial Services.

Apart from the numbers, management commentaries on unsecured loan growth and margins, traction in deposits and opex trends, the traction in fee income and treasury outlook are expected to be in focus in the banking sector’s Q2 scorecard. Read here

HDFC Bank Q2 Results Live Updates: Deposits grew 30% to ₹21.73 lakh crore 

HDFC Bank’s deposits aggregated to approximately ₹21.73 lakh crore as of September 30, 2023, a growth of around 29.9% over ₹16.73 lakh crore as of September 30, 2022.

The bank’s current account and savings account (CASA) deposits in Q2FY24 rose 7.6% to approximately ₹8.17 lakh crore from ₹7.59 lakh crore last year. CASA ratio stood at around 37.6% compared to 45.4% last year.

HDFC Bank Q2 Results Live Updates: Advances grew 57% to ₹23.54 lakh crore

HDFC Bank reported a robust 57.7% growth in its gross advances at ₹23.54 lakh crore as of September 30, 2023, rising from ₹14.93 lakh crore last year. The bank’s domestic retail loans grew by around 111.5% year-on-year (YoY), while commercial & rural banking loans grew by around 29.5% YoY and corporate & other wholesale loans grew by 8% YoY, HDFC Bank said in a regulatory filing on October 4.

The lender said that after the merger with the parent company HDFC Ltd, the bank reported highest ever home loan disbursals at around ₹48,000 crore.

This is a growth of 14.0% over the quarter ending June 30, 2023, and a growth of 10.5% over the quarter ending September 30, 2022, it added. Non-individual loans of the erstwhile HDFC Limited (eHDFCL) aggregated to approximately ₹1.02 lakh crore as of September 30. Read here

HDFC Bank Q2 Results Live Updates: HDFC Bank shares fall 6% YTD

HDFC Bank shares have remained one of the worst performing banking stocks this year. HDFC Bank share price has fallen 8% in the last one month, while it has fallen 7% in three months. The stock is down over 6% year-to-date (YTD).

In the last one year, HDFC Bank shares have gained over 6.3% and risen over 27% in three years.

HDFC Bank Q2 Results Live Updates: NII may decline 4.9% on lower yields

HDFC Bank’s loan growth is expected to be robust, growing by 4.9% QoQ led by other retail and CRB portfolios. However, net interest income (NII) could decline 4.9% due to lower yields leading to pre-provision operating profit (PPoP) fall of 8.2% QoQ. We expect net interest margin (NIM) to decline by 41 bps on account of additional liquidity due to the merger. GNPAs could see an improvement of 6 bps QoQ to 1.34% while we expect provisions to remain flat, brokerage firm Prabhudas Lilladher said.

It sees HDFC Bank’s Q2FY24 net profit at ₹13,640.8 crore, NII at ₹27,358.3 crore and NIM at 3.62%.

HDFC Bank Q2 Results Live: HDFC Bank shares open lower ahead of Q2 earnings

HDFC Bank share price opened lower on Monday ahead of the announcement of Q2 earnings later today. HDFC Bank shares opened at ₹1,536.70 apiece on the BSE as compared to Friday’s close of ₹1,536.75. However, the stock witnessed selling pressure and was trading over half a percent lower. HDFC Bank shares were trading 0.74% lower at ₹1,525.35 apiece.

HDFC Bank Q2 Results Live: Slippages to remain stable

On a like-for-like basis, HDFC Bank’s sequential loan growth has been 4.9%. Net Interest Income (NII) growth will be materially slower than loan growth due to cost of deposits catch up and excess liquidity. Consequently, NIM will be materially lower sequentially. Sequential fee income growth will broadly match loan growth. Opex growth will slightly lag loan growth. Slippages would be broadly stable on a sequential basis. Provisions will be broadly stable due to prudential provisioning, according to Yes Securities.

HDFC Bank Q2 Results Live: High deposit growth, merger to weigh on margin: Emkay

According to Emkay Global Financial Services, HDFC Bank is expected to be hurt by sharp margin contraction post the merger. Higher deposit growth coupled with merger or regulatory drag should weigh on margins and, thus, profitability. The bank is expected to report higher NPAs on a merged basis, Emkay Global said.

As per the brokerage, HDFC Bank may report net profit of ₹15,279.2 crore, net interest income of ₹27,874 crore and net interest margin of 3.8% in Q2FY24.

HDFC Bank Q2 Results Live: HDFC Bank share price in focus ahead of Q2 results today

HDFC Bank share price will remain in focus on Monday ahead of the announcement of September quarter results. HDFC Bank, the largest private sector lender in the country, is set to announce its earnings for the second quarter of FY24 today, 16 October, 2023.

HDFC Bank share price has fallen over 5% year-to-date (YTD) and is down more than 6% in the last one month. On Friday, HDFC Bank shares ended 0.85% lower at ₹1,536.75 apiece on the BSE. Read here

HDFC Bank Q2 Results Live: Margin contraction seen after merger; here’s what to expect

The overall banking sector is expected to see healthy credit growth in the quarter ended September, but margins are likely to compress due to cost catch-up and the impact of Incremental Cash Reserve Ratio (ICRR).

Analysts expect the creation of excess liquidity could affect the net interest margin of HDFC Bank in Q2FY24. However, margins should bounce back in H2FY24 as credit growth picks up and liquidity is utilized. Read full report here

HDFC Bank Q2 Results Live: Excess liquidity to impact margin

Creation of excess liquidity could affect Q2FY24 net interest margin (NIM), although margins should bounce back in H2FY24E as credit growth picks up and liquidity is utilized, brokerage firm Prabhudas Lilladher said. While core earnings growth would be muted for FY24E (3.5% YoY), as NIM and loan growth normalize core PAT may witness a 20.7% CAGR over FY24-26E.

HDFC Bank Q2 Results Live: Lender to be hurt by sharp margin contraction: Emkay

HDFC Bank is expected to be hurt by sharp margin contraction post the merger, Emkay Global Financial Services said.

“After a sharp margin downtrend in the past two quarters, the bank expects margin contraction to be contained in Q2. This coupled with contained provisions is expected to support profitability. Slippages are likely to remain largely flat QoQ; there are no signs of incremental stress as of now,” Emkay Global said.

HDFC Bank Q2 Results Live: Net profit seen at ₹6,045 cr; NII may rise 8.6%

HDFC Bank’s net interest income in Q2FY24 is estimated at ₹27,874 crore, up 8.6% YoY and down 3.6% QoQ. Net interest margin (NIM) is expected to be at 4.1%, down 5 bps sequentially and up 9 bps YoY. The bank is likely to post a net profit of ₹6,045 crore in the September quarter.

HDFC Bank Q2 Results Live: HDFC Bank to announce Q2 results today

HDFC Bank, the largest private sector lender in the country, is set to announce its earnings for the second quarter of FY24 on Monday, 16 October, 2023. This will be the first quarterly financial result of HDFC Bank after it was merged with mortgage lender Housing Development Finance Corporation (HDFC) effective July 1.