HDFC Bank Q4 profit, NII growth miss analysts' estimates; what Anil Singhvi suggests

HDFC Bank reported a weak set of financial results on Saturday and announced a dividend.

HDFC Bank reported its financial results on April 15. | Image: Reuters

HDFC Bank — India's largest lender by market value — succumbed to selling pressure on Dalal Street, after the banking behemoth reported its Q4 financial results and announced a hefty dividend last weekend. Shares in HDFC Bank (HDFCBANK) fell by as much as Rs 39.7 or 2.3 per cent to Rs 1,653.7 apiece on BSE on Monday, as investors returned to the market after a long weekend.

HDFC Bank Q4 results, dividend

On Saturday, HDFC Bank reported 19.8 per cent year-on-year increase in net profit to Rs 12,047.5 crore for the January-March period that fell short of analysts' estimates. Its net interest income (NII) — or the difference between interest earned and interest paid — grew 23.7 per cent to Rs 23,351.8 crore compared with the year-ago period, and net interest margin (NIM) — a key measure of a financial institution's profitability — shrank by 20 basis points sequentially to 4.1 per cent, according to a regulatory filing.

According to Zee Business research, the lender's quarterly profit was estimated at Rs 12,300 crore, NII at Rs 24,000 crore and NIM flat or negative sequentially from 4.3 per cent in the quarter ended December 2022. Read more on HDFC Bank Q4 results | HDFC Bank dividend

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HDFC Bank announced a dividend of Rs 19 per share — a 1,900 payout.

EDITOR'S TAKE | Anil Singhvi says nothing great, nothing bad in HDFC Bank results

Zee Business Managing Editor Anil Singhvi recommends selling HDFC Bank futures for targets of Rs 1,655 and Rs 1,640 with a stop loss at Rs 1,720. He said the lender's Q4 results were largely neutral.

Here's what brokerages make of HDFC Bank after the lender's Q4 results and dividend announcement:

Brokerage	Rating	Target
UBS	Buy	Rs 1,900
CLSA	Buy	Rs 2,025
Nomura	Buy	Rs 1,885
Macquarie	Outperform	Rs 2,110
Citi	Double downgraded to 'sell' from 'neutral'	Reduced to Rs 955 from Rs 1,100