This month is anticipated to see the release of the banking sector’s Q4 results. Every eye is on the performance of the industry’s leading banks, including Axis, ICICI, and HDFC. On April 20, HDFC Bank will release its Q4 results for the last quarter of the fiscal year 2023-2024. On April 27, ICICI Bank is anticipated to report its Q4 results.
The experts predict that due to the high cost of funds, the banking industry will see mid-single-digit percentage increase in net interest income (NII) and margin compression. They also predict that asset quality may improve somewhat.
What Experts Anticipate From The Banking Q4 Results
SBI, Bank of Baroda, HDFC Bank, ICICI Bank, Federal Bank, and Bandhan Bank are among the fourteen banks that are covered by Axis Securities. Regarding the banks it covers, it said that in the fourth quarter of their fiscal year, net interest income (NII), or the difference between interest received and interest paid, is expected to rise by an average of 6.0% at these banks, according to Zee Business.
Prabhudas Lilladher Q4 Results for On Bank
According to a Zee Business article, Prabhudas Lilladher anticipates a difficult quarter for the banks it covers; it estimates a sequential decline of 4.6 percent, mostly due to a decline in NIM, and it projects that NIIs may rise 1.8% on a quarter-over-quarter basis.
Analysts at Prabhudas Lilladher forecast that the PSU banks under their purview might enjoy sequential loan growth in the March quarter of 5.0%, which would be higher than the 3% rise anticipated for their private sector peers.
The rise in deposits is anticipated to be 5.7% QoQ and 15.9% YoY. The company said in its research report released on April 9 that “NII may increase by 2.3 percent QoQ while NIM could decline by 12 basis points to 4.1 percent (last quarter flat).”
Axis Bank and HDFC Bank were Prabhudas Lilladher’s top choices.
Buy call on HDFC Bank shares with a target price of Rs 2,000
Target Share Price for Axis Bank
Purchase call with a target share price of Rs 1,250
Target Share Price for ICICI Bank
Purchase call with a target share price of Rs. 1,300