HDFC Q2FY20 earnings today: Here’s what to expect

HDFC will release its Q2FY20 earnings on Monday. The net interest income (NII) will be a key number to look out for as in the same quarter last year the company had a backlog of goods and services tax (GST)-based securitization. So the NII growth this time could be on the lower side given the fact that securitization income could decline year-on-year (YoY).

The net interest margin (NIM) could remain largely stable at and around 3.3 percent. The assets under management (AUM) growth could taper down to between 12-15 percent, from 12.8 percent in the last quarter.

Asset quality, especially in the non-individual portfolio which saw an uptick of 34 basis points in its previous gross non-performing assets (NPA), will be closely watched. Anything below 1.3-1.35 percent in gross NPA ratio will be a positive.