Follow Us on Google NewsHDFC Bank, one of India's leading private sector lenders, is set to kickstart the earnings season for the banking sector with its Q4 results. Analysts expect the bank's net profit to rise by 21% YoY to INR 12,180 crore, driven by healthy loan growth and continued traction in business across segments. In this article, we'll take a closer look at HDFC Bank's Q4 performance, key monitorables, and what it means for the banking sector.Strong Loan Growth to Drive Topline PerformanceHDFC Bank's provisional numbers indicate that advances grew by 17% YoY to INR 16 lakh crore as of March-end. Domestic retail loans grew by around 21% YoY, commercial and rural banking loans grew by 30%, and corporate and other wholesale loans grew by 12.5%. Meanwhile, deposits grew at a faster pace than loans, with retail deposits rising by 23.5% YoY and wholesale deposits growing by 10%. Overall, HDFC Bank's net interest income is expected to grow by 33% YoY to INR 25,050.4 crore.Profitability Outlook Not That RosyWhile the topline performance is expected to be strong, the profitability outlook is not that rosy. Brokerage ICICI direct expects margins to be stable at 4.1%, while some see it flat. On the asset quality front, Kotak Institutional Equities expects gross non-performing asset ratio to be stable sequentially, led by lower slippages (
