Shares of HDFC Bank were in focus on Monday, July 17 ahead of its results for the April-June quarter (Q1) for financial year 2023-24 (FY24). This will be the private sector lender's first result after its merger with HDFC Ltd, effective from July 1, and will keep analysts glued to the management's earnings growth guidance for the merged financial behemoth.

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HDFC Bank shares settled 0.27 percent higher at Rs 1,645.60 apiece on Friday. At the bourses, the stock advanced close to 6 percent on the BSE during the three months under study, as against a 10-percent gain in the benchmark S&P BSE Sensex. The S&P BSE bankex index, meanwhile, surged 13 percent during the period, ACE Equity data shows.

On Friday, the banking sector bellwether said that it has allocated more than 311 crore new shares of the bank to shareholders of the merged entity HDFC. According to the merger scheme, every HDFC shareholder has got 42 shares of HDFC Bank for every 25 shares held.

The allotted equity shares would be listed on the stock exchanges and rank pari passu in all respects with the existing equity shares of HDFC Bank, it said.

The lender recently shared its provisional numbers of the merged entity for the June quarter, which showed that gross advances surged 13 percent year-on-year (YoY) to Rs 22.45 lakh crore and about 1 percent on a sequential basis.

The merged entity's deposits were approximately Rs 20.64 lakh crore as of June 30, 2023, up 16 percent from the corresponding period of last year.

The merged entity's average liquidity coverage ratio for the quarter under review was around 120 percent on a proforma basis.

However, the estimates given by analysts for HDFC Bank do not take into account the merged entity.

Motilal expects business growth to see continuous traction, on the back of healthy growth across segments. Margins are expected to stay stable, while deposit traction will be in focus. Business growth and earnings trajectory post-merger with HDFC will be key monitorables, the brokerage said.

The bank's standalone net profit will likely rise about 27 percent YoY to Rs 11,630 crore, as per the average brokerage estimates. The net interest income or NII, which is the difference between interest earned and interest expended, may have grown 22.5 percent to Rs 23,871 crore.

According to a CNBC-TV18 poll conducted on the bank's standalone performance, it is anticipated that the NII will witness a growth of 22.8 percent, compared to the previous year and approximately 2.5 percent on a sequential basis.

The net profit will likely by 24.3 percent YoY but may experience a decline of 5.1 percent as against the previous quarter.

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