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HDFC Bank Q1 net may go up 29% on retail boom
Mumbai, July 11: HDFC Bank is expected to unveil a 29 per cent jump in quarterly earnings as India`s second-largest private bank benefits from a retail lending boom stoked by interest rates at their lowest level for three decades.
Analysts say spreads on retail loans are twice that on corporate loans and could be as much as 500 basis points. "HDFC Bank's branch expansion drive has been quite impressive and retail business will be the key driver," said Raamdeo Agrawal, managing director at brokerage Motilal Oswal Securities.
The bank is expected to report on Monday a net profit of Rs 106 crore ($22.9 million) for the first fiscal quarter ended June 30 against Rs 82.4 lakh in the year ago period, according to a Reuters survey of five brokerages. It will be the first major bank to unveil results in the current season.
"HDFC Bank does not depend as much on (bond) trading income as some other banks," said a banking analyst with a foreign securities house.
Bureau Report