Private lender HDFC Bank will flag-off the December quarter earnings for large banks when it announces its Q3FY21 results on Saturday, January 16. Amid improving economic activity, analysts expect the lender to report higher-than-industry average loan growth, implying continued market share gains. However, net profit could come under pressure due to higher slippages and lower fee income growth.
Painting a grim picture, ICICI Securities forecasts a 17 per cent year-on-year (YoY) decline in the lender’s net profit at Rs 6,132.1 crore compared with Rs 7,416.5 crore net profit reported in the corresponding quarter of the previous fiscal (Q3FY20). Sequentially, the profit may contract 18 per cent from Rs 7,513.1 crore clocked in the September quarter of the current financial year (Q2FY21).
On similar lines, Edelweiss Securities pegs the profit at Rs 7,565.3 crore for the quarter under review, up 2 per cent YoY and 0.7 per cent QoQ.
While analysts at ICICI Securities see the NII growing 12 per cent YoY, but flat sequentially, to Rs 15,848 crore, those at Antique Stock Broking peg the income at Rs 16,598.8 crore, up 17 per cent on-year (5.2 per cent QoQ). NII was Rs 14,172.9 crore in Q3FY20 and Rs 15,776.4 crore in Q2FY21.
Net interest margin (NIM) is seen unchanged at 4.1 per cent compared with the September quarter of FY21. On a yearly basis, it would be a 20 bps dip from 4.3 per cent reported in Q3FY20.

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