HDFC Bank Q4 2023 Results: What to Expect?

HDFC Bank, one of India's leading largest private sector banks is all set to announce its Q4 2023 results today. It is expected to report double-digit net profit growth in the fourth quarter between January to March 2023.

Earlier, the bank had clocked a net profit of Rs 12,698 crore for Q3 2023.

Kotak Institutional Equities noted that the bank's net interest income (NII) is expected to grow in double-digits, in the range of 18.1-26.4 per cent, supported by healthy loan growth and stable margins. "It further added that it expects NII growth at approximately18 per cent YoY led by loan growth of approximately 18 per cent on-year (the bank has already reported headline business performance). We expect NIM to be stable on-quarter. The growth is balanced across segments,".

Axis Securities said that the banking sector will show strong systematic credit growth, thereby "delivering a robust approximately 17 per cent on-year credit growth" in the quarter that ended March 31, 2023. It added that "in terms of asset quality, we believe Q4FY23 will be another uneventful quarter with healthy recoveries and moderating slippages driving asset quality improvement,". Supported by stable NIMs and muted credit costs, we expect banks under our coverage to report strong earnings growth of 31 per cent on-year during Q4FY23, it noted.

What to watch from Q4 2023 Results of HDFC Bank?

Analysts say that the key monitorable will be the management commentary on the retail growth and status of its merger with HDFC Ltd.

The bank in a regulatory filing said that it will consider declaring a dividend for the financial year. The regulatory filing said that the "Board will inter alia consider a proposal for a recommendation of dividend on the equity shares of the Bank for the financial year ended March 31, 2023,".

HDFC Bank has trimmed its MCLR (marginal cost-based lending rate) for select tenors by up to 85 basis points, with effect from April 10, 2023, after the RBI MPC's move to keep the repo rate untouched.