Stock Market

NEW DELHI: HDFC, India’s largest mortgage lender, will announce its September quarter results on Thursday. Experts believe that the performance of retail loans and the agri portfolio, trends in digital banking payments and balance sheet growth outlook will be the key monitorables. Brokerage Sharekhan expects the lender to report 30.5 per cent surge in net interest income (NII) to Rs 3,405.80 crore for the September quarter as compared to Rs 2,610.80 crore in the same quarter last year. Profit after tax (PAT) is expected to rise 4.4 per cent to Rs 2,194.40 crore, from Rs 2,101.10 crore in the year-ago quarter. “Amongst the better placed NBFCs to withstand margin and competitive pressures, impact of rising borrowing costs would be lesser for this highly rated company.

The company has earned Rs 787 crore from stake sale in subsidiary via IPO,” Sharekhan noted in an earnings preview. Kotak Securities expects the housing finance company to deliver 2 per cent sequential growth in earnings on the back of stable NIM and 2 per cent QoQ (16 per cent YoY) growth in the loan book. Provisions will likely be lower due to selldown of one of its large troubled exposures -- the lender’s exposure under 3A will reduce to that extent. “The company has recognised capital gains of Rs 945 crore (Rs 787 crore post tax) from a stake sale in the asset management business.

Decline in dividend income (Rs 6 crore versus Rs 536 crore in Q2 FY18) reflects recognition of dividend from HDFC Bank in Q2 FY18 versus Q1 FY19,” the brokerage said. Loan growth is expected to be 20 per cent, mainly driven by retail loans whereas deposit growth is expected to be 21 per cent YoY led by traction in CASA and bulk deposits, Motilal Oswal Securities said in a note. “Calculated margins at 4.1 per cent are expected to contract due to a rise in cost of funds.

NII is expected to grow at 13 per cent YoY.

Other income growth is expected to moderate to 11 per cent YoY, factoring in lower trading gains.

Fee income should remain healthy,” the brokerage said.





Unlimited Portal Access + Monthly Magazine - 12 issues-Publication from Jan 2021


Buy Our Merchandise (Peace Series)

 


Contribute US to Start Broadcasting



It's Voluntary! Take care of your Family, Friends and People around You First and later think about us. Its Fine if you dont wish to contribute and if you wish to contribute then think about the Homeless first and Feed them. We can survive with your wishes too :-). You can Buy our Merchandise too which are of the finest quality.

Debit/Credit/UPI

UPI/Debit/Credit

Paytm


STRIPE





21