Prabhudas Lilladher picked Axis Bank and HDFC Bank as its top picks. Know more below on HDFC Bank share price target and Axis bank share price target.
The banking sector Q4 Results are expected to be announced this month. All eyes on performance of major banks in the sector like HDFC bank, ICICI bank, Axis Bank. HDFC Bank Q4 results for the fourth and final quarter of the financial year 2023-24 will be announced on April 20. ICICI Bank Q4 results are expected to be released on April 27 .
According to the experts, the banking sector will witness mid-single-digit percentage growth in net interest income (NII) and margin compression owing to the elevated cost of funds and there can be some improvement on the asset quality front.
What Analyst Expect On Banking Q4 Results
Axis Securities covers 14 banks including SBI, Bank of Baroda, HDFC Bank, ICICI Bank, Federal Bank, and Bandhan Bank. While commenting on banks under its coverage, it stated that these banks are likely to register an average 6.0 per cent increase in net interest income (NII), or the difference between interest earned and interest paid, in the fiscal fourth quarter, reported Zee Business.
Prabhudas Lilladher On Bank Q4 Results
Prabhudas Lilladher expects a weak quarter for the banks under its coverage, it sees a fall of 4.6 percent sequentially mainly on account of a reduction in NIM and predicts that NIIs may increase 1.8 per cent on a quarter-on-quarter basis, according to Zee Business report.
Prabhudas Lilladher analysts predict that the PSU banks in its coverage may register sequential loan growth of 5.0 per cent in the March quarter, which is more than private sector counterparts who are expected to see 3% growth.
“Deposit growth is expected to be 5.7 per cent QoQ/15.9 per cent YoY. NII may increase by 2.3 per cent QoQ while NIM could decline by 12bps to 4.1 per cent (last quarter flat),” mentioned the firm in its research report published on April 9.
Prabhudas Lilladher picked Axis Bank and HDFC Bank as its top picks:
HDFC Bank Share Price Target
Buy Call with share price target of Rs 2,000
Axis Bank Share Price Target
Buy call with share price target of Rs 1,250
ICICI Bank Share Price Target
Buy call with share price target of of Rs 1,300
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice.)