The two teams will go up against each other again on Wednesday for the second leg
Defying trends, the country's largest private sector lender, HDFC Bank, has shifted its asset mix significantly towards high-rated segments. As a result, its wholesale-to-retail mix has tilted heavily in favour of wholesale, even at the cost of margins. Further, it is even looking to ramp up its branch network, with an aim to service clients within a 1-2 km radius rather than the current 5-6 km radius.
The banking sector emerged as an outlier when the rest of India Inc witnessed a slowdown in earnings in FY23. The combined net profit of listed public and private sector banks was up 39.4 per cent year-on-year (YoY) last financial year and their share in India's gross value added (GVA) or gross domestic product (GDP) at factor cost rose to a record high of nearly 1 per cent up, from 0.8 per cent a year ago. Listed banks' combined net profit grew to Rs 2.36 trillion in FY23, from Rs 1.69 trillion a year ago. In comparison, India GVA at current prices was up 15.2 per cent YoY at Rs 247 trillion in FY23; it was around Rs 214 trillion a year ago.
Despite rising interest rates, and high inflation, the banking sector is doing well, on the back of a recovering economy. The last couple of quarters indicate credit demand is picking up and Return on Assets (RoA) is more than acceptable at the moment. The PSU bank pack may be more interesting at the moment simply due to being valued at far lower multiples than the private banks.
Colonel Ajay Kothiyal, Kirti Chakra, Shaurya Chakra, is one of the most decorated soldiers to join politics. He still has two bullets lodged inside his body sustained in a gun battle with terrorists in J&K.
Collectively, the pack of 12 has posted a 50 per cent rise in profits -- Rs 25,685 crore. On a quarter-on-quarter basis (that is, September over June), the rise is 68 per cent. Public sector banks have never had such a stellar performance, explains Tamal Bandyopadhyay.
Axis Bank's results for the fourth quarter of the 2022-23 financial year (Q4FY23) were skewed due to large one-off charges related to its acquisition of Citi's retail business. Axis reported a loss of Rs 5,730 crore on account of exceptional items of Rs 12,350 crore (net of tax) towards Citi's acquisition, policy harmonisation etc. Excluding this one-off, the adjusted net profit or profit after tax (PAT) would be Rs 6,630 crore, up 61 per cent year-on-year (YoY).
Bajaj Finance's quarterly business update, coupled with around 24 per cent fall over the past six months, has turned risk-reward favourable for investors, observe analysts. They see up to 39 per cent upside in the stock, from a one-year perspective. Global brokerage CLSA, for instance, has upgraded the stock from 'underperform' to 'outperform' with an increased one-year target price of Rs 6,600 (vs Rs 6,000 earlier) as it believes the risk-reward has turned favourable for the counter, and there is scope for expansion if growth remains robust.
HDFC Bank Q4 review: HDFC Bank's January-March quarter (Q4) results, for financial year 2022-23 (FY23), brought no cheer to investors as elevated costs, and merger-related uncertainties continue to dent the sentiment. Moreover, analysts fear that merger-related costs may put pressure on margins and cost to income ratio in the near-term, while the return on equity could moderate owing to low leverage of the parent. Analysts, therefore, opine that the stock's re-rating may be some time away. "While the risk of a de-rating on a standalone basis appears to be quite low given that the business performance is holding up well, we believe a re-rating in the stock would happen as and when more clarity emerges on the smooth transition (merger)," said a report by Sharekhan.
The drop in net interest margin will separate the men from the boys, explains Tamal Bandyopadhyay.
Brokerages expect India Inc to report an upturn in earnings for the March quarter of 2022-23, after a relatively muted showing in the previous two quarters. This growth is expected to be led by banking, financial services and insurance (BFSI) companies, FMCG firms, and automobile makers. The combined net profit of the Nifty50 companies (excluding Adani Enterprises) is expected to have grown 15.6 per cent to Rs 1.77 trillion in Q4FY23, from Rs 1.53 trillion a year ago.
Punjab National Bank on Monday allayed concerns about its exposure to Adani companies and noted that its loans to the group are diversified into 8-9 companies, which are generating sufficient cash. Atul Kumar Goel, the bank's MD & CEO, in a post-earnings call said total exposure to Adani group, so far, stands at Rs 7,000 crore, of which Rs 2,500 crore is in the airport sector. He further said there is "no worry as the exposure is not very big" and that the bank is keeping an eye on the development that is taking place.
Should deposit growth continue to outpace credit growth, banks may end up ceding some hard-earned 25-50 bps improvement in profitability or net interest margin gained in the past two years.
While HDFC Bank has vowed to recoup its lost market share in the credit card segment in three to four quarters by aggressively sourcing new cards, brokerages believe it is a little hard to come by, given how competitive the landscape has become, with other players in the market becoming equally aggressive to gain market share. Kotak Institutional Equities in its report on Monday said, "We would like to believe that the recovery in market share is likely to be gradual, if any. "All the key players, including Axis Bank, are now willing to expand their credit card portfolios as they have tested quite well against Covid-19."
Four others MD of Ramdev-promoted Patanjali Ayurved Acharya Balkrishna; Director of National Institute of Medical Sciences and Research (NIMS), Jaipur, B S Tomar; his son Anurag Tomar; and senior scientist Anurag Varshney have also been named in the FIR, he said.
The RBI had on August 7 announced a five-member expert panel under former ICICI Bank chairman Kamath to make recommendations on the required financial parameters for recasting corporate loans.
ATKMB looked the likelier of the two teams to take the lead in the opening exchanges, with the Mariners needing two goals at least to make a comeback.
Recent rates cuts by most banks may not have a significant impact on margins, say analysts.
27 mountaineers perished in an avalanche in the mountains of Uttarakhand last week. The mountaineers were returning from a trek to the Draupadi's Danda mountain peak when disaster struck at 8.45 am in the morning.
Housing finance major HDFC on Monday reported a 16 per cent growth in standalone net profit to Rs 3,700 crore for the January-March quarter, helped by record loan sales on the back of benign interest rates and the resultant fall in cost of funds along with the near-total repayments that culled provisions and credit costs. For the full year, the company, which is working on a reverse merger with its banking subsidiary, has booked a net profit of Rs 13,742 crore, up from Rs 12,027 crore in FY21, vice-chairman and chief executive Keki Mistry said on Monday in an earnings call with analysts. On a consolidated basis, net profit for the quarter surged 21.6 per cent to Rs 6,892 crore on-year and for the full year it jumped 21 per cent to Rs 22,595 crore, Mistry said and guided towards better days.
HDFC and HDFC Bank's merger - touted as India's biggest-ever corporate merger - pumped up shares of the two entities on the bourses. Shares of Housing Finance Development Corporation (HDFC) skyrocketed 9 per cent while those of HDFC Bank zoomed 10 per cent. In comparison, the benchmark S&P BSESensex and the Nifty50 indices settled 2.2 per cent higher on Monday.
While rate cuts may increase churn between banks, these may not boost credit offtake meaningfully.
Axis Bank's loan portfolio quality deteriorated, with gross NPAs rising to 5.22% of gross advances.
A team of doctors at NIMS, attending on the Kadapa MP, administered IV fluids after his health indicators including blood pressure and glucose levels dropped drastically, a NIMS official said.
The health condition of YSR Congress chief Y S Jaganmohan Reddy on Saturday improved a bit after doctors at the Nizam's Institute of Medical Sciences, where he is being treated following his indefinite fast against Andhra Pradesh bifurcation, administered IV fluids to him.
HDFC Bank has ensured that no bank will be able to match them in the near future without bleeding on margins.
State Bank of India hikes lending rates, and other banks pick up the signal.
Asks banks to settle for lower margins, boost efficiency.
The coming years could be exciting for Bandhan Bank, IDBI Bank, IDFC First Bank, Federal Bank, and CSB Bank.
A local court on Tuesday directed the NIMS hospital in Hyderabad to file a fresh report regarding the health condition of former chairman of Satyam Computers B Ramalinga Raju, before it by July 1, even as CBI filed a memo seeking second opinion report through independent committee of doctors.
A detailed report of the medical tests conducted on former chairman of Satyam Computers B Ramalinga Raju, who was admitted to NIMS in Hyderabad, is likely to come out by this evening and would be communicated to Chanchalguda jail authorities, a senior NIMS doctor said.
Satyam Computers founder B Ramalinga Raju, who is in jail for the past eight months in connection with a Rs 8,000 crore corporate fraud, suffered a massive heart attack and was admitted to a hospital on Monday night, jail and police sources said. Raju, who will turn 55 on September 16, was transferred to the Nizam Institute of Medical Sciences hospital from Chanchalguda jail, where he is under judicial custody on charges including fraud, forgery, cheating, embezzlement.
Union Bank of India, United Bank of India reduced base rates.
Education UK experts at the British Council Nim Bahadur and Sonu Hemanii hosted a chat with GA readers on October 29. The transcript.
'Forcing the development of an indigenous vaccine as a cure for COVID-19, bypassing all health & safety norms, to be announced by PM Modi on Independence Day is fraught with horrendous human costs'
Bank of Baroda has relatively better position on impaired assets.
They were part of a five-member team of climbers from West Bengal.
In the April-June period, bond yields rose by 30 bps.
Masih Saighani fired Chennaiyin into the lead in the 17th minute before two goals in either half by Martin Chaves (43rd, 71st) seemed to have handed all three points to NorthEast United. However, a late equaliser from Lallianzuala Chhangte (90+3rd) ensured the away side took a point from the match.
Mumbai upped the ante and started creating a few chances after going behind.
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