In an interview to CNBC-TV18, Manish Agarwalla, Co-Head of Research at PhillipCapital shared his views on readings of quarterly earnings from banking sector.
ICICI Bank will be reporting its Q1 FY18 earnings this evening. In an interview to CNBC-TV18, Kunal Shah of Edelweiss Financial Services spoke about his expectations.
Analysts expect degrowth in profitability but growth in net interest income for the quarter.
Vishal Goyal, Executive Director-Leading Banks and Financial Research at UBS India shared his outlook on what could unfold in the Q1 results for the banking universe.
Provisions may witness a slight uptick after the RBI's diktat in June. Positive trends on asset quality will, however, continue with the pace of slippages into NPAs declining for all banks.
ICICI Bank is well capitalised and the strong franchise should be able to ramp up once the bad loan mess is behind it. We expect the bank to see a much better FY19, post a consolidation/resolution year of FY18. After adjusting for the bad assets and value of subsidiaries, the stock quotes at a reasonable valuation of 1.9x FY17 adjusted book.
After fourth quarter earnings, global brokerage houses (barring JP Morgan) expect the stock to give 17-38 percent return over 12-month.
In an interview to CNBC-TV18's Latha Venkatesh, Sonia Shenoy and Anuj Singhal, Darpin Shah of HDFC Securities shared his reading and expectations for Q4 results of ICICI Bank. He expects slippages to be roughly around Rs 7,200 crore.
Analysts expect slippages to remain on the higher end between Rs 6,500-7,000 crore.
ecoding the numbers both Rajiv Mehta of IILF and Siddharth Purohit of Angel Broking were not shocked with the rise in gross non-performing loans but would look forward to management commentary on resolution of NPAs
Analysts expect slippages to remain on the higher end between Rs 7,000-8,000 crore (against Rs 8,029 crore in Q2). Hence, slippages from restructured book and movement of stressed assets (sale to asset reconstruction companies, addition to S4A, 5/25 & SDR) will be closely seen.
HDFC Bank profit in third quarter grew by 15 percent to Rs 3,865.3 crore compared with Rs 3,356.84 crore in year-ago period. Net interest income increased 17.5 percent year-on-year to Rs 8,309 crore in the quarter gone by.
According to Sanjiv Bhasin of IIFL there is a lot of pessimism around the third quarter earnings but he expects banks to be in a sweet spot.
Speaking to CNBC-TV18 Romesh Sobti, MD & CEO of Indusind Bank said that CV sales in November weren‘t as bad as expected. December wasn‘t as bad as forecast.
Watch the interview of Nilesh Parikh, Associate Director at Edelweiss Securities with Latha Venkatesh, Sonia Shenoy & Anuj Singhal on CNBC-TV18.
Prakash Diwan of Altamount Capital Management says he is worried on two parameters â€“ One is there is yet no visibility of softening in the net non-performing assets (NPAs). Two, lack of credit growth is becoming a big concern.
Purohit says PNB Housing Finance's listing is decent and adds that the company has enough capital and scope to move to large-scale operations. But with respect to the company's lag structure, he says PNB HF lags behind.
Slippage in Q2 from watchlist will be seen closely. Provisions may remain elevated in Q2 despite stake sale in ICICI Pru life. Q1 provision was at Rs 2514.5 crore while ICICI had created contingent provision in Q4FY16 of which Rs 2734.6 crore is available with them after Q1.
Net Interest Income is expected to increase by 3.8 percent Q-o-Q (up 2 percent Y-o-Y) to Rs 5356.5 crore, according to KR Choksey.
Net Interest Income is expected to increase by 3.2 percent Q-o-Q (up 1.4 percent Y-o-Y) to Rs 5325.2 crore, according to Centrum.
In CNBC-TV18's 'Bull versus Bear' segment, SP Tulsian and Mayuresh Joshi argue about the pros and cons attached to the stock.
Nilesh Parikh of Edelweiss Securities is not too perturbed with the disappointing first quarter ICICI Bank numbers and still has a buy rating on the stock.
Reacting to the news, Siddharth Purohit, Senior Research Analyst at Angel Broking, said that the reported numbers look decent. Surprisingly, gross NPA numbers haven't gone up in percentage and absolute terms, he said. There could have been some upgradation, he said.
Key things to watch out for would be slippages from restructured book (which was Rs 2,724 crore in Q4), asset quality, management commentary on scheme for sustainable structuring of stressed assets (S4A) and watchlist (which was at Rs 44,000 crore in Q4FY16) for the quarter.
In an interview with CNBC-TV18, Andhra Bank MD and CEO Suresh N Patel said the bank had fully complied with the Reserve Bank of India's asset quality review guidelines that had called for stricter provisioning of doubtful accounts.