HDFC Bank to announce Q4 results tomorrow: Five things to watch out for

HDFC Bank Limited shares remained in focus on Friday, April 19, as the banking giant is scheduled to release its quarterly report on Saturday. Shares of HDFC Bank closed 2.64% higher on the NSE ahead of the release of the financial results for the quarter and financial year ending March 31, 2024.

The investors and market experts have kept a keen watch on HDFC Bank as this will be the first financial year result after the erstwhile HDFC Ltd amalgamated with HDFC Bank on July 1, 2023.

In an exchange filing the bank informed that its Board of Directors will meet on April 20 to consider and approve the financial results for Q4FY24 and the full financial year. The Board will also consider recommendation of dividend for the financial year ending March 31, 2024.

Also Read: How to plan an options trade in HDFC Bank ahead of Q4 results?

Let’s take a look at 5 things to watch out for in the HDFC Bank Q4 results scheduled to be released on April 20.

Growth in Loans In its operational updates for the March quarter the lender said that its gross loans increased 1.6% sequentially as compared to ₹24.69 lakh crore at the end of December 31, 2023. The domestic retail loans grew around 109% year-on-year and around 3.7% quarter-on-quarter (QoQ) when compared to Q3.

The commercial and rural banking loans of HDFC also went up by 24.6% on a year-on-year basis and around 4.2% over December 31, 2023.

Good loan growth for HDFC hints at increased profitability and positive economic conditions.

Bank Deposits HDFC Bank posted a 26.4% growth in deposits in March quarter when compared to March 31, 2023, and around 7.5% over ₹22.10 lakh crore in Q3FY24. At the end of the last financial year, the deposits aggregate was at ₹18.83 lakh crore. Both retail and wholesale deposits saw positive growth, hinting at increased customer confidence.

Reduced NPA From the September 23 quarter to the December 23 quarter, the Non-Performing Assets (NPAs) of the bank reduced from ₹31,577.89 crore to ₹31,011.67 crore.

The NPAs are expected to go lower again in Q4FY24, helping the bank perform better.

Shareholding by DII and Retailers Over the last few months, Domestic Institutional Investors (DIIs) have increased their shareholding in HDFC Bank by nearly 2%. For the quarter ended in December 2023, DIIs were holding 30.81%, and they are holding 33.59% now. Retailers increased their shareholding from 16.9% to 18.56%.

Credila Stake Sale Sales proceeds from the Credila stake sale are expected to be a good addition to HDFC Bank’s 4th quarter results as it will help the banking company achieve a better financial position. The bank had completed the sale of its stake in the education finance arm, HDFC Credila, for ₹95.53 billion.

Shares of HDFC Bank closed 2.64% higher at ₹1,534.2 apiece on the NSE on Friday.