Banks Q2 Results Preview - Loan, Deposit Growth Likely To Improve: PL Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..PL Capital Report.Banks under our coverage are expected to witness a better quarter compared to Q1 FY25 led by private banks due to higher fees and lower provisions sequentially. Core earnings could see a slight uptick of +1.7 QoQ to Rs 554.7 billion (versus -4.7% QoQ in Q1 FY25). Loan/deposit growth is expected to pick up given Q1 is seasonally weak, and we envisage a growth of +3.4%/+3.8% QoQ (+0.9%/+0.0% in Q1 FY25). LDR may fall by 33 bps QoQ to 85.1%, mainly due to HDFC Bank (-374 bps QoQ), while net interest margin is likely to contract by 3 bps QoQ (versus +5 bps in Q1 FY25) to 3.59%. Federal Bank, City Union Bank, DCB Bank and IndusInd Bank may report better NIM movement. Fees might bounce back, growing 6.2% QoQ, to Rs 357 billion (versus -9.0% QoQ), which would be offset by rise in opex to Rs 851 billion (+6.3% QoQ). Core pre-provision operating profit may come in at Rs 868.3 billion (+2.0% QoQ). HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and Federal Bank may outperform on core PPoP. Gross slippage ratio might improve by 24 bps QoQ as Q1 usually sees a sharp spike in agri slippages. Banks’ PAT is expected to decline by 1.5% QoQ to Rs 609 billion. Among our coverage universe, we prefer ICICI Bank and HDFC Bank..Click on the attachment to read the full report:.NBFC Q2 Results Preview - Trends Point At Seasonally Weaker H1: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Banks Q2 Results Preview - Loan, Deposit Growth Likely To Improve: PL Capital

The brokerage prefers ICICI Bank, HDFC Bank among its coverage universe.

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Banks Q2 Results Preview - Loan, Deposit Growth Likely To Improve: PL Capital

The brokerage prefers ICICI Bank, HDFC Bank among its coverage universe.

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