Banks Q3 Results Preview - Core Profitability To Decline Sequentially: Prabhudas Lilladher

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Banks under our coverage are expected to witness a weak quarter, as core earnings could fall by 7.3% QoQ to Rs 463 billion (versus +0.1% QoQ in Q2 2024), mainly driven by reduction in net interest margin.Loan growth might come in at 3.8% QoQ (4.3% in Q2 FY24), while deposit accretion could be +2.1% QoQ (3.9% last quarter). NIM contraction could moderate this quarter (versus Q2 FY24) and we expect NIM to decline by 5 basis points QoQ (-16 bps in Q2 FY24) to 3.62%. HDFC Bank Ltd,. IndusInd Bank Ltd. and Federal Bank Ltd. may see better NIM performance. Fees could grow by 3.1% QoQ to Rs 333 billion while opex may increase by 3.4% QoQ to Rs 842 billion (seasonality in case of public sector banks). Core pre-provision operating profit may come in at Rs 733 billion (-0.4% QoQ). HDFC Bank, IndusInd Bank and Federal Bank might do better on core PPoP. Led by KCC, gross slippage ratio might see a slight 3 bps rise to 1.28% and we expect State Bank of India, HDFC Bank, ICICI Bank, Axis Bank Ltd. to report higher delinquencies. Banks’ profit after tax is expected to be Rs 524 billion (-8.7% QoQ). Among our coverage universe we prefer ICICI Bank and HDFC Bank..Click on the attachment to read the full report:.BFSI Q3 Results Preview - Muted Operating Profits; Steady Growth, Asset Quality Metric: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Banks Q3 Results Preview - Core Profitability To Decline Sequentially: Prabhudas Lilladher

Banks under our coverage are expected to witness a weak quarter, as core earnings could fall by 7.3% QoQ to Rs 463 billion, mainly driven by reduction in net interest margin.

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Banks Q3 Results Preview - Core Profitability To Decline Sequentially: Prabhudas Lilladher

Banks under our coverage are expected to witness a weak quarter, as core earnings could fall by 7.3% QoQ to Rs 463 billion, mainly driven by reduction in net interest margin.

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