Private lender HDFC Bank is scheduled to announce its financial results for the first quarter of the fiscal year 2024 (Q1FY24) on Monday (July 17). According to a CNBC-TV18 Poll conducted on the bank's standalone performance, it is anticipated that the net interest income (NII) will witness a growth of 22.8 percent compared to the previous year and approximately 2.5 percent sequentially.

The net profit is expected to increase by 24.3 percent year on year (YoY) but may experience a decline of 5.1 percent compared to the previous quarter.

An important aspect to monitor will be the net interest margin (NIM), which is estimated to remain stable or experience a slight decline according to analysts' predictions.

Kotak Securities forecasts a slippage rate of less than 2 percent and expects recoveries to contribute to the improvement of the bank's asset quality on a sequential basis. They anticipate a 16.5 percent year-on-year growth in operational profit.

The bank's operating expenses (Opex) are likely to remain high due to its ongoing expansion of branches.

Based on the Q1 business update from the merged entities of HDFC Bank and HDFC Ltd, it is observed that deposits have increased by 16.2 percent compared to the previous year and approximately 1.2 percent compared to the previous quarter.

Advances, on the other hand, have shown a growth rate of just over 13 percent year on year and approximately 0.7 percent sequentially.

When considering the standalone performance, deposits have increased by 19.2 percent year on year and approximately 1.6 percent sequentially. However, the CASA ratio, which represents the proportion of current and savings accounts to total deposits, has reached its lowest point in 11 quarters.

Additionally, advances have only grown by 0.9 percent compared to the previous quarter, marking a 26-quarter low. The credit-to-deposit ratio stands at 84.5 percent, reflecting a 12-quarter low.

First Published:Jul 14, 2023 7:13 PM IST