HDFC Bank will report its Q2 earnings on Saturday and the street is anticipating sequentially profit growth to be the best in the last three quarters.

The business momentum which was pretty strong this time around continued to gain market share up to about 36 basis points sequentially. The deposit is up about 14. 50 percent year-on-year and about 4.50 percent sequentially.

However, in that, the low-cost deposit is up about 7.50 percent sequentially, which meant that the CASA ratio is at a five-quarter high of 47 percent.

The loan growth momentum was pretty strong up about 15.50 percent year-on-year and about 4.50 percent sequentially.

#2QWithCNBCTV18 | @HDFC_Bank is expected to report a growth of 17% in profit and 12% in NII YoY. Net interest margin is seen improving on a sequential basis pic.twitter.com/0tH0VG5hoW

— CNBC-TV18 (@CNBCTV18Live) October 14, 2021

Analysts are expecting net interest margin to expand anywhere around 8 to 10 basis points and slippages may decline on a sequential basis.

Phillip Capital has an estimate of about Rs 6,150 crore which compares to more than Rs 7,360 crore in the previous quarter, so provisions may decline quarter-on-quarter. Watch out for the performance of HDB Financial.

CNBC-TV18 poll suggests net interest income (NII) growth of 12 percent year-on-year and about 3.8 percent sequentially. We are working with profit growth of more than 17 percent year-on-year up about 13.8 percent sequentially.

(Edited by : Ajay Vaishnav)