Motilal Oswal has come with its quarterly earning estimates on banking & finance sector for March 2012.
Banking & finance sector will report a robust earnings growth of 36%, driven by base effect in State Bank. Excluding SBI, earnings growth stands at 10.2%. The composition stands as: Private Banks up 22% YoY, PSU Banks (Excluding SBI) down 1.4% YoY and NBFCs up 14% YoY. Several PSU banks will report contraction in earnings (Canara Bank, Andhra Bank, Union Bank, OBC, etc) due to higher credit costs, although BoI, Indian Bank, etc will report earnings growth. Asset quality will remain the most important driver to performance of these stocks. Private sector banks are expected to report a 22% earnings growth, with several names like HDFC Bank, Yes Bank, Indusind Bank, ING Vysya, etc expected to report earnings growth of 25-30%.
| Company | Net interest income | Net profit | ||||
| Mar.12 | % YoY | % QoQ | Mar.12 | % YoY | % QoQ | |
| Axis Bank | 21,147 | 24.3 | -1.2 | 11,098 | 8.8 | 0.7 |
| Federal Bank | 5,439 | 21.5 | 3 | 2,021 | 17.7 | 0.1 |
| HDFC Bank | 32,211 | 13.4 | 3.4 | 14,576 | 30.8 | 2 |
| ICICI Bank | 28,344 | 12.9 | 4.5 | 17,849 | 22.9 | 3.3 |
| IndusInd Bank | 4,548 | 17.2 | 5.6 | 2,197 | 28 | 6.7 |
| ING Vysya Bank | 3,350 | 24.9 | 3.5 | 1,182 | 29.5 | -1.1 |
| South Indian Bank | 2,795 | 26.1 | 2.2 | 1,034 | 26.5 | 1.1 |
| Yes Bank | 4,580 | 31.4 | 7.1 | 2,657 | 30.7 | 4.6 |
| Andhra Bank | 9,703 | 12.6 | -1.4 | 2,698 | -13.7 | -11 |
| Bank of Baroda | 27,145 | 3.9 | 2.2 | 13,022 | 0.6 | 1 |
| Bank of India | 20,716 | -10.2 | 0.2 | 6,378 | 29.2 | -10.9 |
| Canara Bank | 19,922 | 0.9 | 3.8 | 8,060 | -10.4 | -7.9 |
| Indian Bank | 12,125 | 9.1 | 3.6 | 5,104 | 16.3 | -2.9 |
| Oriental Bank | 11,241 | 10.9 | -1.4 | 3,237 | -3 | -8.6 |
| PNB | 35,926 | 18.6 | 1.6 | 12,088 | 0.7 | 5.1 |
| State Bank | 122,005 | 51.4 | 6.4 | 34,158 | NM | 4.7 |
| Union Bank | 18,261 | 6.4 | 2.5 | 4,349 | -27.2 | 120.8 |
| Dewan Housing | 1,366 | 43.2 | 10.1 | 840 | 43.3 | 12.1 |
| HDFC | 15,240 | 11.2 | 23.3 | 12,297 | 7.7 | 25.3 |
| IDFC | 5,765 | 21.4 | 5.6 | 3,736 | 30 | 19 |
| LIC Housing Fin | 3,570 | -15.1 | 9.6 | 2,472 | -15.1 | 9.5 |
| M&M Financial | 4,737 | 19.6 | 13.4 | 1,763 | 12.6 | 14 |
| Power Finance Corp | 11,096 | 31.6 | 1.1 | 7,680 | 31.1 | -3 |
| Rural Electric Corp | 10,538 | 23.4 | 4.8 | 7,966 | 20.9 | 12.9 |
| Shriram Transport Fin | 3,046 | -6.1 | -2.1 | 3,370 | 0.3 | 11.3 |
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