HDFC Q2 Results Tomorrow: Individual Loan Passbook to Boost AUM and NIM Stability

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it is widely expected to post a double-digit increase in revenue for the quarter ended September, with higher growth in core individual loans contributing to the overall loan portfolio.

Analysts expect 11-26% year-on-year (YoY) growth in

the net interest income of for the reporting quarter. The mortgage lender is expected to release its results on Thursday.

“We expect HDFC to see 4% quarter-on-quarter loan growth in the retail segment, which will translate to 19% growth in individual loans. Overall, loan growth is (observed) below 16% due to slower growth in the non-individual segment,” Kotak Institutional Equities said in its report.

Brokerage

Securities expects the mortgage lender’s assets under management (AUM) growth to be healthy at 16% year-over-year.

At the end of the June quarter, HDFC’s AUM was Rs 6.7 lakh crore, registering a growth of 17% over the prior year period. The gross loan book was Rs 5.8 lakh crore. Loans to individuals constituted 79% of outstandings at the end of June. At the AUM level, HDFC recorded 19% growth in the individual loan portfolio, which was the highest in 8 years, the lender had said.

On the profitability front, analysts expect net interest margin (NIM) to remain largely flat. Brokerage PhillipCapital, however, expects an annual expansion of NIMs for HDFC.

The lender’s net profit for the quarter is expected to rise more than 10% year on year to Rs 4,177 crore. Benefits aside, the main trigger for action will be HDFC merging with arm . In October, HDFC announced that it would hold a meeting with shareholders on November 25 to obtain their consent on this subject.

The Street will be looking for further clues on that front from the company on Thursday.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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