General advances increased 5 percent year -on -year (interannual) and 4 percent of quarter to quarter (QOQ) to ₹ 26.43 Lakh Crore
The HDFC Bank of the largest private sector will probably see a slight contraction in its net margin (NIM), a key indicator of the profitability of the banks in Q4Fy25 as the bank continues to increase deposits at the rhythm of saber that at the rate that not that the pace that the Pace that.The NIM of the lender stood at 3.43 percent in the third quarter. You are ready to inform the results of the fourth quarter on April 19.
According to the provisional updates of the Bank’s fourth quarter, general advances increased 5 percent year -on -year (interannual) and 4 percent of quarter to quarter (QOQ) to ₹ 26.43 Lakh Crore. Meanwhile, deposits grew by 14 percent year -on -year and 6 percent Qoq to ₹ 27.14 Lakh Crore.
“The growth of HDFC Bank deposits will be better than credit growth, which helps the loan deposit ratio. Credit growth is significantly below the growth of the industry. NIM will hire slightly QOQ,” said Axis Securities in a report. He added that the OPEX relationship for the bank will remain widely stable, while the operational profits will be healthy.
The bank must see the quality of the stable asset in the fourth quarter as fresh landslides remain under control. Net interest income (NII) will probably increase by 7 percent year -on -year to ₹ 31,082 million rupees, while non -interesting income is expected to fall 34 percent with ₹ 12,061 million rupees, he said.
The lowest growth of the advances is in line with the comment of the management that the lender would grow advances at a slower pace than the banking system in the 2015 fiscal year, it grows loans in pair with the banking sector in the fiscal year 26 and a faster pace than the industry in the fiscal year 2017. This is to reduce the credit deposit ratio (CD) of the bank, which was shot after the fusion of ancient HDF. HDFC Bank also titled loans worth ₹ 10.7 billion rupees in the Q4Fy25 to lower CD index.
Key monitoring
According to Yes Securities, NII’s growth of the bank will be slightly slower than the growth of average loans due to the fall in advances that exceed the cost of deposits.
“In consequence, NIM will be lower sequentially. The growth of the income of the sequential rate will coincide widely with the growth of loans. The growth of Opex Woobd Sligtly was that the business was lower in sequential due to the second quantity. Provision. Saisonity.
According to Santanu Chakrabarti of BNP Paribas Securities India, despite the conservative assumptions, the return of the bank’s assets (Roa) is seen playing 1.9 percent in the end of 25 and the return of equity (roe) that the pre-fusidor listens.
“We also perform a wide analysis of scenarios on the impulse of an incremental house (current and savings accounts) as a key determinant of the Bank’s profit locus. It revealed a remarkable asymmetry. A positive surprise at home fish-à-pengue moving moved move move or surprise rate.
Posted on April 18, 2025