HDFC Bank to report 15% profit growth in Q4 earnings; here’s what to watch out for

Private lender HDFC Bank is likely to report over 15 per cent growth in net profit and operating profit before provisions and contingencies with stable asset quality in March quarter earnings on Friday.

Brokerage Edelweiss Securities believes HDFC Bank may report 15.30 per cent year-on-year (YoY) rise in net profit at Rs 3889.40 crore in Q4FY17 compared with Rs 3,374.20 crore reported for the same quarter last year. Pre-provision operating profit is likely jump from Rs 5,734 crore to Rs 6,623 crore.

“The bank’s loan growth is likely to be lower than historical trend. Core revenue momentum will be softer and below trend and asset quality trends continue to remain benign,” Edelweiss said in a research report.

G Chokkalingam, Founder of Equinomics Research and Advisory, said: “HDFC Bank may report 17-18 per cent year-on-year (YoY) growth in bottom line with stable asset quality.”

Since the beginning of this calendar year, the share price of HDFC Bank has climbed nearly 21 per cent till April 19, 2017, whereas the benchmark BSE Sensex has gained 10 per cent.

The stock has risen from Rs 1197.30 on January 2, 2017 to Rs 1,447.05 on April 19, 2017.

For the previous quarter ended December 31, 2016, HDFC Bank reported 15.15 per cent year-on-year rise in net profit at Rs 3,865.33 crore against Rs 3,356.84 crore in the same quarter a year ago.