BUSINESS
Why affordable housing finance companies seem expensive to investors?
The affordable housing finance market grew 20 percent in FY22 and is likely to grow by 18 percent in the current financial year, according to Care Ratings Ltd. That is faster than the banking sector’s home loan growth of 13 percent in FY22 and the 11 percent growth for HFCs.
BUSINESS
Q1 marks growth phase for India’s banks but warts are visible too
The top five banks by asset size accounted for half of the reduction in provisions and 53 percent of the drop in bad loans. This means small lenders are yet to recover completely
BUSINESS
Bond yields weigh on Q1 profits for banks, but road ahead looks smoother
With inflation easing and the rupee strengthening, there may not be a sharp jump in bond yields
BUSINESS
Five charts that show Indian consumers are optimistic but won't turn big spenders
Indian consumers are more optimistic than before about the prospects of employment and income. But inflation is adding a layer of caution when it comes to spending.
BUSINESS
As the credit cycle turns up, banks shouldn’t go overboard on lending
Even as small borrowers are more vulnerable to the double whammy of elevated input costs and rising borrowing costs, bank lending to them is at its fastest pace in many years
EARNINGS
SBI Q1 result | Net profit of Rs 6,068 crore, misses street estimates
SBI Q1 results: The mark-to-market hit dragged SBI’s non-interest income down massively to a mere Rs 2,312 crore for the reported quarter compared with Rs 11,802 crore a year ago
BUSINESS
As RBI gives an umbrella for rupee, bonds are left in the downpour
The benchmark 10-year government bond yield rose roughly 10 basis points while the rupee appreciated as the RBI Governor Shaktikanta Das highlighted inflation concerns after announcing a 50 bps hike in the repo rate.
BUSINESS
Investors warm up to IDFC First Bank, RBL Bank but more work needed
Shares of IDFC First Bank and RBL Bank have been on an upswing for the past one month but concerns over unsecured loans and higher operating expenses have not abated.
BUSINESS
Swaps sing a different tune as RBI rate-setters meet for policy review
Five-year swap rates have dropped more than 70 basis points over the past one month, a sign that investors are betting the RBI may begin to chop policy rates soon
BUSINESS
Life insurance Q1 show marks profitability, dominance of SBI Life
SBI Life’s June quarter metrics show that it pays to be the largest in the industry segment. SBI Life has made its investors happy by exceeding their expectations on business growth and trumping competition on profitability metrics.
BUSINESS
Yes Bank’s rebirth needs more than a Carlyle stamp
More than marquee funding, the progress on fixing stressed assets through the asset reconstruction route in partnership with JC Flowers will earn it the trust of the market
BUSINESS
Auction shows floating rate bonds have gone from saver to sinker
Cut-off price for floating rate bonds have been progressively lower, resulting in losses for investors and a hit to sentiment.
BUSINESS
Fed pivot or not, RBI may focus on reining in inflation
For the RBI, it’s easier to tackle inflation through policy rate hikes than through the exchange rate channel. The experience in 2013 shows that excessive intervention does not help when the tide is against the domestic markets.
BUSINESS
Why the stellar rally in banking stocks bypassed RBL Bank
Shares of RBL Bank are down 39 percent over the past year, though there has been some respite in the past month. Analysts, however, see a further downside and some have cut target prices again
BUSINESS
ICICI Bank vs HDFC Bank: A tale of outperformance
ICICI Bank’s valuation boost began more from HDFC Bank’s troubles than its own outperformance. But the first-quarter performance of both lenders shows that ICICI Bank’s outperformance is the main driver of valuations.
BUSINESS
SEBI needs to discipline fintechs in bond market, quickly
SEBI’s consultation paper shows that the regulator is worried about fintech platforms operating in a regulatory vacuum
BUSINESS
SEBI wakes up early to the wild west of bond market
A SEBI consultation paper has proposed to regulate online bond platforms floated by fintechs on concerns that these entities operate in a regulatory vacuum and do not have robust KYC processes.
BUSINESS
Life insurance results preview: Low base to prop up growth in Q1
The slower-than-earlier rate at which life insurance policies are being sold, could see profitability being more measured during the quarter.
BUSINESS
US inflation outpaces India’s. Then why the dollar gets stronger than the rupee
The outcome of elevated inflation is erosion in the value of an economy’s exchange rate. If a country’s inflation is higher relative to its trading partners’, its currency has to adjust down.
BUSINESS
Bank results Q1 preview: High profit growth likely but watch out for treasury hit
Low-cost Current and Savings Account (CASA) deposits would keep banks’ cost of funds low in a rising interest-rate environment even as lenders pass on policy rate hikes to borrowers through lending-rate increases
BUSINESS
NBFCs Results Preview: Q1 will sparkle but look out for trouble
NBFCs may report high double digit balance sheet growth and resilient asset quality but investors need to watch for margin compression ahead
EARNINGS
RBI study finds lazy banking rewards public sector banks but not private lenders
The key reason could be the approach in pricing credit risk. Past bad loan cycles have shown that private sector banks have demonstrated a more robust credit risk pricing ability compared with their public sector counterparts.
BUSINESS
It's going to be a mixed bag of first-quarter earnings for investors
Given the mixed performance expected by companies for Q1 of FY23, analysts have slashed earnings per share estimates
BUSINESS
As loans lift banks in Q1, treasury desks may weep
Banks held 30 percent of their deposits in sovereign bonds at the end of June, far higher than the regulatory minimum required
