HDFC Bank shares were up over 1% in today's trade on expectations of strong second quarter earnings. The country's second largest private lender will declare its financial results for July-September period tomorrow.
Analysts expect the bank to report over 30% growth in net profit for the 52nd consecutive quarter on the back of superior margins, strong loan growth and stable asset quality. "Our estimates suggest this trend will sustain all through 2012-13," Alpesh Mehta, analyst with brokerage Motilal Oswal Securities, said.
Barclays said it does not expect any "negative surprises" on HDFC Bank's asset quality and sees the lender's loan growth at 20% year-on-year, in line with its historical trend to grow faster in the first half of the financial year.
"A steady quarter with stable margins and above industry growth," notes Edelweiss Securities in July-September earnings forecast for HDFC Bank.
Brokerage Prabhudas Lilladher said growth in the bank's core fee income, around 23% year-on-year, will contribute to rise in HDFC Bank's net profit during the quarter.
At 1:31PM, HDFC Bank shares were traded at Rs 624.65 on the National Stock Exchange (NSE) up 1.1% from previous close. The Bank Nifty was up 0.9%.