HDFC Bank is  expected  to announce its December quarter  results  on Tuesday, January 16. Analysts and brokerage firms expect the bank to report  good  overall  numbers for the December  quarter  However,  net  profit margin (NIM) may come under  pressure  from  high  capital costs.  

 Earlier this  month,  HDFC Bank  reported  its  total  advances  amounted  to ₹24,69,500 crore as  on  December 31, 2023, registering a growth of  about 62.4% from  ₹15,20,500 crore as  on  December 31, 2022. 

Domestic  personal  loans  increased 111%  year-on-year  and  about 3% quarter-on-quarter (QoQ).

 Commercial and rural banking loans  increased  by  6.5%  and  other  corporate and  wholesale loans (excluding  erstwhile HDFC  Limited non-personal loans) increased  by  2%.  

 The  Bank’s  CASA ratio stood at  approximately 37.7%  as of December 31, 2023,  compared to  44%  as of December 31, 2022 and  37.6%  as of September 30, 2023. 

  Shreyansh Shah,  Research Analyst  at  StoxBox,  expects the bank to  witness  strong  growth in its  business  thanks  to increased  branch count  and  a well-functioning  sales  team , supported  by the  holiday  season. 

  According to  Shah’s estimates,  deposits are  expected  to  grow well  in Q3FY24 due to attractive interest rates and increased  fixed deposit (TD) mobilization.  However,  his  CASA may have a  small  impact due to increased  TD traction.  

  NIM is expected  to  range from 3.4% to 3.6%  due to  high  capital costs.  “We expect  profitability and return  on capital to improve  due to  increased  disbursements, mainly  for  construction  financing.  As HDFC Bank  already manages HDFC’s non-commercial portfolio  Ltd. in the  last quarter,  we do not  expect any  further  deterioration  in asset quality in the current  and  upcoming  quarters,” Shah said.  Going  forward,  Shah expects the bank to have a  strong coverage ratio. Securing  healthy liquidity  thanks  to the merger effect, with  returns supported  by  strong revenue  growth  across  the  various  lending  segments. Additionally, a better mix of  lending sources , especially focusing  on the retail  sector, will  help the bank  perform better than banks  in the  same  industry.  Estimates from  brokerage firm Motilal Oswal Financial Services  suggest that  HDFC Bank  could record  a  32.5% year-on-year increase  in net  profit,  while net interest income  could grow by 26.8% over the same period last year. same period  in  the third quarter of fiscal 2024.  

  HDFC  Bank’s operating profit,  according to Motilal Oswal,  could increase by 26.2% year-on-year.  

 For more  information,  visit at https://happenrecently.com/zepto/?amp=1