HDFC Bank is set to release its results for the second quarter of the financial year on Saturday, October 19. Analysts expect a muted performance from the country’s largest private bank.

What Happened: HDFC Bank is expected to post flat results for the quarter ended September, according to analysts. Multiple brokerages estimate HDFC Bank's Q2 net profit to stay within 2% — plus or minus — of the amount it earned the same quarter last year, where the net profit stood at ₹15,976.1 crore.

Sequentially, the profit is also expected to be flat compared to ₹16,174.8 crore in Q1 FY25.

Brokerage Views: Nomura pegs HDFC Bank's Q2 net profit at ₹15,850 crore, down 1% year on year and 2% quarter on quarter. It forecasts a pre-provision operating profit (PPOP) of ₹23,990 crore, up 6% from a year ago and flat sequentially, with core PPOP at ₹23,490 crore.

It expects net interest income (NII) to grow 9% year on year and remain flat quarter on quarter at ₹29,810 crore. Nomura expects net interest margin (NIM) to expand by 10 basis points year on year and 3 basis points sequentially.

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Prabhudas Lilladher is optimistic about the lender’s outlook, predicting a 13.6% year-on-year rise in NII to ₹31,111.2 crore and a 4.3% sequential increase.

The brokerage expects PPOP to reach ₹24,910.8 crore, marking a 9.8% year-on-year and 4.3% quarter-on-quarter growth. It also projects a 4.3% rise in net profit from a year ago to ₹16,658 crore.

It sees loan book growth to be muted at 1.3% quarter on quarter and 7% year on year. Prabhudas Lilladher expects NIM to hold at 3.71%, while provisions may rise by 15% sequentially to ₹2,992.4 crore. It expects gross non-performing assets (GNPA) ratio to improve to 1.28%, down from 1.33% in Q1.

Sharekhan forecasts tepid growth in net profit, with a 1.6% year-on-year to ₹16,228 crore. PPOP is expected to rise 7.4% year-on-year to ₹24,369 crore, while NII is projected to grow 9.8% year-on-year to ₹30,079 crore. The brokerage expects asset quality to remain stable, with flat NIMs sequentially.

Kotak Institutional Equities expects NII to be ₹30,066.2 crore, up 9.8% from a year ago. Non-interest income is projected to grow by 6.9% year on year to ₹11,449.1 crore, with PPOP expected to rise 7.5% from a year ago to ₹24,396.1 crore.

The brokerage forecasts a net profit of ₹16,240.5 crore, reflecting a 1.7% year-on-year increase.

Price Action: HDFC Bank’s share price was down 0.65% at ₹1,662.20 in early trade on Friday amid broad-based risk-off sentiment in Indian markets.

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