HDFC Bank Q4 Results Preview: PAT likely to rise to Rs 19,200 crore—Here's what investors can expect

HDFC Bank Q4 FY26 Earnings Preview: Mumbai-headquartered HDFC Bank -- the country's largest lender by market value -- is set to stage a steady show when it reports its financial results later this week. The private sector bank is scheduled to report its earnings for the January-March quarter on Saturday, April 18. Analysts expect the lender's upcoming results to be aided by activity in its retail portfolio and steady asset quality.

ICICI Bank is slated to report its financial results on the same day.

HDFC Bank Q4 Results Preview: What to expect in net profit and interest income?

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According to Zee Business research, the private bank is expected to register a net profit of Rs 19,200 crore for the quarter ended March 31, which translates to an increase of 9.0 per cent over the corresponding period a year ago. It had reported a net profit of Rs 17,616 crore for the final quarter of FY25.

The analysts expect the bank's net interest income (NII) -- or the difference between interest earned and interest paid -- to grow 5.0 per cent to Rs 33,660 crore. For the year-ago period, its NII had stood at Rs 32,066 crore.

HDFC Bank profitability

HDFC Bank's March-quarter net interest margin (NIM) -- a key measure of profitability for financial institutions -- is estimated to remain in the 3.35-3.50 per cent range.

The bank's NIM has stayed at these levels for several quarters.

HDFC Bank bad loans

The bank's asset quality is expected to remain steady during the quarter.

Asset quality is measured by comparing changes in the proportion of non-performing assets (NPAs) -- or bad loans -- in total loans.

HDFC Bank's fourth-quarter gross and net NPAs are pegged at 1.2 per cent and 0.4 per cent of its total loans, respectively, unchanged from the previous three months, according to the research.

Analysts expect its provisions for bad loans and slippages (new bad loans) to remain largely steady, on the back of a gradual recovery witnessed in its loan book.

HDFC Bank deposit and credit growth

Earlier this month, the private lender reported growth of 12.80 per cent and 12 per cent in deposits and gross loans for the January-March period.

These are key metrics that determine a bank's liquidity position and lending activity.

Key things to watch out for in Q4 earnings

All eyes will be on the following:

• Signs of normalcy in the bank's operations amid post-merger headwinds
• Remarks on credit growth
• Signs of stability in its CASA ratio on the back of robust deposit growth
• Commentary board restructuring

This will be the bank's first earnings report since the exit of its part-time chairman and independent director Atanu Chakraborty.

HDFC Bank shares vs Nifty50 vs Nifty Bank

As of April 15, HDFC Bank shares have lost 19 per cent of their value so far this year, underperforming declines of 7.5 per cent and 6 per cent in the Nifty50 and Nifty Bank indices, respectively.