Author: Nishtha Mehrotra | EQMint
Synopsis:
- HDFC Bank and ICICI Bank will announce their Q2 FY27 results on October 17.
- Strong deposit growth could support lending, but rising funding costs may pressure margins.
- Investors will watch earnings, asset quality and HDFC Bank’s upcoming leadership transition.
HDFC Bank Q2 Earnings: What to Watch
HDFC Bank and ICICI Bank are preparing to report their September-quarter earnings, with deposit growth and net interest margins (NIMs) expected to remain key focus areas. That strong foreign currency non-resident (FCNR-B) deposit inflows could support funding, although the changing deposit mix may put pressure on profitability.
HDFC Bank’s deposits grew 18.8% year-on-year in Q2, while advances increased 16.3%. However, its current account and savings account (CASA) ratio declined to 31.6%, highlighting concerns about low-cost funding.
Analysts expect HDFC Bank’s net interest margin to face moderate pressure, while asset quality is expected to remain stable. Investors will also monitor management commentary ahead of Anup Bagchi’s planned appointment as managing director and CEO on October 27.
For ICICI Bank, strong loan growth and earnings are expected, although FCNR-B inflows could weigh on margins.
The results will help investors assess whether strong business growth can offset rising funding costs.
Disclaimer: This article is for information purposes only and is not investment advice.
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