HDFC Bank, India’s largest private sector lender, is expected to post double-digit growth in profit and net interest income in the quarter ended December 2021, with stable asset quality and lower provisions.

Shares of HDFC Bank rose more than 1% on Jan. 14 ahead of its quarterly earnings. It has gained more than 8% since its recent low on Dec. 20, underperforming benchmarks Bank Nifty and Nifty50, which have risen more than 11% and 9%, respectively, over the same period.

Earlier this month, HDFC Bank released its provisional business figures, saying that prepayments rose 16.4% y-o-y and 5.1% q-o-q to Rs 12.6 crore, retail loans grew 13.5% y-o-y (4.5% q-o-q), corporate loan book grew y-o-y 7.5% (up 4.5% month-on-month).

The bank further said that deposits in the December 2021 quarter rose 13.8% yoy (+2.8% qoq) to Rs 1,446 crore and CASA deposits rose 24.6% y-o-y (+3.5% qoq) to Rs 681 crore. “The CASA ratio was approximately 47% as of December 31, 2021, compared to 43% as of December 2020 and 46.8% as of September 2021.”

“Net interest income increased by 12.7% year-on-year. We expect margins to stabilize at 4.3%,” ICICI Direct said.

Complete News Source : Money Control