Edelweiss has come out with its fourth quarter (Jan-March 18) earnings estimates for the Banking & Financial Services sector. The brokerage house expects HDFC to report net profit at Rs. 2,388.6 crore up 16.8% year-on-year (down 57.9% quarter-on-quarter).
Net Interest Income (NII + OI) is expected to increase by 9.9 percent Y-o-Y (up 13.3 percent Q-o-Q) to Rs. 3548.3 crore, according to Edelweiss.
Edelweiss earnings estimates for HDFC
Disbursement growth is likely to be strong benefitting from various government initiatives on affordable housing. Furthermore. no sell downs to HDFC Bank suggest that loan growth will also be higher at (we anticipate 19% plus individual loan growth). Spreads are likely to be stable. Gains from stake sale (in HDFC Developers and HDFC reality) will be used to shore up coverage.
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