HDFC Bank Set to Announce Q4 Earnings and Dividend on April 20
HDFC Bank, one of the leading private sector lenders in India, is gearing up to unveil its financial performance for the fourth quarter of the fiscal year 2023-24 on April 20. The anticipation is high as investors eagerly await insights into the bank’s profitability and operational efficiency during this period.
The board of directors of HDFC Bank is scheduled to convene on April 20 to deliberate on various aspects, including the approval of the audited financial results for the year ending March 31, 2024. Additionally, the board will discuss the proposal for dividend distribution for the same financial year.
In compliance with regulatory requirements, the trading window for dealing in HDFC Bank shares and securities has been closed from March 25 to April 22, 2024. This closure encompasses designated employees, directors, and other relevant parties, as mandated by SEBI regulations.
In its preliminary Q4 business update, HDFC Bank has already unveiled some key highlights. Notably, the bank has witnessed substantial growth in gross advances, which surged by 55.4% year-on-year to reach ₹25.08 lakh crore as of March 31, 2024. Similarly, deposits have shown a robust increase, aggregating to approximately ₹23.80 lakh crore, marking a 26.4% year-on-year growth and a 7.5% quarter-on-quarter rise.
CASA (Current Account Savings Account) deposits, a crucial metric for banks, have also witnessed positive momentum. In the fourth quarter of FY24, CASA deposits grew by 8.7% year-on-year to ₹9.09 lakh crore. Moreover, the sequential growth in CASA deposits stood at 8.8%, reflecting healthy traction in this segment.
Looking ahead to the impending Q4 results, analysts have put forth their expectations. It is anticipated that HDFC Bank will report a net profit of ₹16,163 crore for the quarter ended March 2024, representing a significant growth of 34.2% compared to the corresponding quarter of the previous fiscal year. However, on a sequential basis, a marginal decline of 1.3% is expected from the preceding quarter.
Net interest income (NII), a key determinant of a bank’s core profitability, is projected to witness a robust growth of 26.1% year-on-year, reaching ₹29,443.9 crore in Q4FY24. Additionally, a modest sequential increase of 3.4% is anticipated. Net interest margin (NIM), another critical metric, is expected to remain steady, albeit with certain variables impacting its trajectory.
Furthermore, analysts are optimistic about HDFC Bank’s asset quality, anticipating a strong performance characterized by reduced slippages and an improving trend in granular recoveries. Despite the prevailing systemic challenges related to liquidity dynamics and evolving loan portfolios, HDFC Bank is poised to maintain its resilience and demonstrate commendable asset quality metrics.
Market sentiment towards HDFC Bank remains positive, as evidenced by the recent uptick in its share price. On Thursday, HDFC Bank shares closed 3.06% higher at ₹1,527.90 apiece on the Bombay Stock Exchange (BSE), reflecting investors’ confidence in the bank’s prospects.
HDFC Bank’s upcoming Q4 results are eagerly awaited by stakeholders, including investors, analysts, and industry observers. The bank’s robust business fundamentals, coupled with its prudent risk management practices, position it favorably to navigate through the evolving economic landscape and deliver sustained value to its stakeholders.
