HDFC Bank Q4 Results Preview: Profit may rise 23%, all eyes on management commentary

MUMBAI: HDFC Bank, India’s largest private sector lender, is likely to report a 23 per cent year-on-year rise in net profit to Rs 8,550.3 crore for the quarter ended March 31, according to an average of six analysts polled by ETMarkets.com.

The private lender is also expected to report a nearly 12 per cent on-year rise in net interest income in the quarter to Rs 17,000 crore.

HDFC Bank will report its quarterly and full-year earnings on Saturday.


Investors will keenly monitor any changes in the lender's asset quality and its commentary in the wake of the second wave of Covid-19 infections in the country.

Brokerage Emkay Global Markets expects HDFC Bank to report a gross non-performing loans ratio of 1.4 per cent for the quarter.

For the three months to December 31, the bank had reported a gross NPA ratio of 0.81 per cent, and 1.38 per cent for the quarter before.

Banks are expected to give the true picture of their asset quality in the March quarter after the Supreme Court refused to extend the standstill on reporting of bad loans till August 31.


Brokerage Motilal Oswal Financial Services believes investors should keep a keen eye on the asset quality of agriculture and unsecured loan baskets.

For the final quarter of financial year 2020-21, HDFC Bank is expected to report 13.8 per cent year-on-year growth in pre-provisioning operating profit to Rs 14,747 crore, according to Emkay Global.

Another major aspect that investors will keenly watch is the impact of the Reserve Bank of India’s order on issuances of new credit cards on the lender’s credit card business. The Reserve Bank of India (RBI) had asked the lender to halt all new issuances of credit cards and digital services offerings till the time it sorted outs its technological issues.