HDFC Bank to announce Q4 results today: Credila likely to aid net profit

India’s largest private lender HDFC Bank will announce its financial results for the March quarter and full financial year 2023-24 on Saturday, April 20.

HDFC Bank shares on Friday demonstrated a notable recovery from early lows and closed near the day’s high at ₹1,531.3 apiece, up 2.44%, on the NSE.

Experts believe HDFC Bank to report a strong set of Q4 and FY24 numbers after the private lender reported notable performance in its business update for the fourth quarter.

Also Read: HDFC Bank Q4 Results LIVE

HDFC Bank reports strong business performance in Q4

HDFC Bank reported an impressive 55.4% year-on-year (YoY) jump in its total advances to ₹25,08,000 crore as of March 31, 2024, compared to ₹ 16,14,200 crore in the same period a year ago. The growth was led by a whopping 108.9% jump in domestic retail loans compared to the quarter ended on March 31, 2023.

The Bank’s deposits also ballooned 26.4% year-on-year to ₹23.80 lakh crore as of March 31, 2024, compared to ₹18.83 lakh crore in the year-ago period.

The bank’s CASA deposits stood at around ₹9.09 lakh crore as of March 31, 2024, up 8.7% compared to ₹ 8.36 lakh crore in the year-ago period. The lender reported a CASA ratio of 38.2% in the quarter under review against 44.4% in the corresponding quarter a year ago.

CASA ratio of a bank indicates the ratio of deposits in current, and saving accounts compared to the total deposits. The ratio is an indicator of the profitability and financial health of a lender as the higher CASA ratio shows lower cost of funds.

Credila sale expected to boost Q4 bottomline

HDFC Bank completed the sale of its education loan arm Credila to PE firms ChrysCapital and BPEA EQT for ₹9,552.73 crore. Experts believe HDFC Bank to post strong Q4 numbers boosted by the realisations from the sale.

Market observers have projected a 30% growth in net profit to ₹15,663 crore in the March quarter of FY 2023-24 compared to ₹12.047.5 crore in Q4 of FY 2022-23. The bank reported a little over 33% jump in net profit to ₹16,370 crore for the December quarter against ₹12,260 crore in the year ago period.

HDFC Bank may post over 24% growth in NII, stable margins

HDFC Bank is expected to post 24.2% growth in net interest income (NII) for the March quarter to ₹29,010 crore compared to ₹23,351.8 crore in the year ago period, according to experts.

The bank reported nearly 24% growth in NII to ₹28,470 crore in the December quarter against ₹22,990 crore in Q3FY23.

Analysts also expect HDFC Bank to report lower credit cost and better recovery trends and stable NII margins in Q4FY24.