HDFC Bank Q3 Results: Profit Growth Expected at 30%; NIM Recovery Likely, Provisions May Rise

HDFC Bank is expected to announce a strong growth in net profit for the third quarter of FY24. The bank’s net interest income (NII) is projected to increase by over 25% year-on-year, while the net interest margin (NIM) is expected to recover slightly from its Q2 low. However, provisions for the quarter may see a single-digit rise. Overall, the bank’s asset quality is anticipated to remain stable despite the merger.

Analysts from Axis Securities, KRChoksey Shares and Securities, Motilal Oswal Securities, and Yes Securities have all expressed positive outlooks for HDFC Bank’s Q3 results. These analysts expect profit growth to range from 30% to 32.5% YoY, with NII growth estimated at around 27.8% YoY. Emkay Global also suggests a recovery in margins and anticipates elevated NPAs due to the merger.

On January 15, the Sensex and Nifty 50 both witnessed significant gains, driven by the technology sector, banking stocks, and Reliance Industries. This rise in the broader market sets the stage for high anticipation ahead of the Q3 results announcement of various companies, including HDFC Bank, ICICI Lombard General Insurance Company, and L&T Technology Services.

Aside from HDFC Bank, a total of 31 companies are scheduled to release their Q3 results today. These companies include Himadri Speciality Chemical, Jindal Saw, Network18 Media & Investments, Newgen Software Technologies, and many others, providing crucial insights into various sectors and the broader economic recovery.

As the day progresses, Indian markets remain optimistic, targeting new record highs. Technical analysis of the Nifty suggests a psychological resistance level at 22,500, with immediate upside potential towards 22,300. However, traders should be mindful of profit booking in the 22,200-22,300 zone, considering the sustained one-sided rally.