HDFC Q3 profit seen up 11% to Rs 1681 cr, NII may grow 8%

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Housing finance company HDFC
‘s profit is expected to increase 10.6 percent year-on-year to Rs 1,681.2 crore in the quarter ended December 2016.

Net interest income, the difference between interest earned and interest expended, may grow 7.8 percent to Rs 2,352.9 crore compared with Rs 2,182.1 crore in year-ago period, according to average of estimates of analysts polled by CNBC-TV18.

Key things to watch out for would be net interest margin, asset under management and asset quality.

Analysts say if net interest margin comes above 3.75 percent (against 3.8 percent in Q2), asset under management at 15 percent and gross non-performing assets below 0.85 percent (against 0.75 percent in Q2) then that will be positive.

They expect dividend income from HDFC Bank to support operating profits.