Thursday's financial arena is eagerly anticipating the Q2 results of HDFC Bank, which will disclose the bank's merged financials for the first time. The bank's stock price currently stands at Rs 1,548.55, despite its status as Dalal Street's highest-valued bank and varied brokerage ratings.
Key aspects to look out for in the upcoming report include the Q2 Net Interest Margin (NIM), robust loan and deposit growth, an anticipated dip in profit, and a Gross Non-Performing Assets (NPA) ratio of 1.4%.
The merged entity's Q2 profit is projected to be Rs 15,180 crore, accompanied by a year-on-year rise in Net Interest Income (NII) of 13%. This comes after a quarter-on-quarter growth of 5% in merged loans.
In addition to these figures, the bank has seen incremental deposits cross Rs 1 lakh crore. Meanwhile, the credit cost to total loans remains low at 0.49%, indicating a healthy credit environment within the institution.
Despite its high valuation on Dalal Street, HDFC Bank has been trailing behind its peers in some metrics. This makes the upcoming Q2 results all the more critical for stakeholders to gauge the bank's performance and future trajectory.
InvestingPro Tips suggest that while the bank has consistently increased earnings per share, it also suffers from weak gross profit margins. The bank's dividend yield stands at a substantial 32.43%, and it has raised its dividend for three consecutive years, which may be of interest to income-focused investors.
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