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Investors got to stay invested in these stocks despite despite the optically expensive valuation.
Analysts said if loan growth comes above 20 percent, domestic loan growth above 23 percent, net interest margin above 4.2 percent and slippages below Rs 2,500 crore for the quarter then that would be taken positively by the Street.
In an interview to CNBC-TV18, Rajiv Mehta of IIFL Wealth shared his views and readings on ICICI Bank's Q2 numbers and also spoke about specific stocks.
Despite a 34 percent drop in net profit at Rs 2,058 crore from a year ago, the Mumbai-based bank saw its gross non-performing assets (NPAs) in the three month period July-September decreased even as it spiked from a year-ago period.
HDFC Bank is set to announce its Q2FY18 numbers today. Rajiv Mehta of IIFL Wealth Management shared his views and outlook of what to expect from the numbers.
Analysts feel if loan growth comes above 20 percent, domestic loan growth above 20 percent and net interest margin above 4.2 percent then that will be taken positively by the Street.
While optically, the aggregate earnings may not appear as a shocker, it nevertheless hides underlying weakness and a clear loss of momentum.
Expectations were running low on account of pre-GST implementation adjustments in the quarter, and overall, the Nifty earnings have not resulted in any incremental negative surprise.
Analysts feel if loan growth comes above 15 percent, domestic loan growth above 20 percent and net interest margin above 4 percent then that will be positive.
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.
Analysts say if the company reports loan growth above 13 percent and net interest margin above 4 percent then that may be considered positive by the Street.
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.
HDFC Bank's profit is likely to grow 12.3 percent year-on-year to Rs 3,770.7 crore and net interest income is seen rising 16.1 percent to Rs 8,203.8 crore in the quarter ended December 2016, according to average of estimates of analysts polled by CNBC-TV18.
Siddharth Purohit of Angel Broking says he is dissapointed by the loan growth but he says apart from that the numbers look really good.
HDFC Bank, the country's second largest private second lender, is likely to report a 20 percent growth in Q2 profit at Rs 3,443 crore on yearly basis, according to consensus estimates.
Net Interest Income is expected to increase by 6.5 percent Q-o-Q (up 24 percent Y-o-Y) to Rs 8284.3 crore, according to KR Choksey.
Net interest income is expected to increase by 2.9 percent Q-o-Q (up 20 percent Y-o-Y) to Rs 7666.5 crore, according to KR Choksey.
Profit is likely to be at Rs 3,244 crore in April-June quarter against Rs 2,696 crore in same period last year while net interest income may grow to Rs 7,724 crore from Rs 6,398 crore on yearly basis, according to average of estimates of analysts polled by CNBC-TV18.
A number of large companies have posted results since the earnings season started Thursday last week.
No negative surprises from the results and the loan book to grow by 15-16 percent in FY17, Deven Choksey, MD at KRChoksey.
Siddharth Purohit of Angel Broking, says there has been marginal improvement in gross non-performing loans (NPL) level and significant growth in net interest margins (NIMs).
Analysts say loan growth may be driven by retail growth, adding asset quality may remain stable. They see improvement in fee income growth and slight pressure on net interest margin.
In the near-term, Suresh Ganapathy of Macquarie Capital Securities does not see any re-rating catalyst. He believes the fundamental value of ICICI Bank is at Rs 240-250 per share.
In an interview with CNBC-TV18's Ekta Batra, Vaibhav Agrawal of Angel Broking, Kunal Shah of Edelweiss, Gaurang Shah of Geojit BNP Paribas and banking analyst Hemindra Hazari shared their readings of HDFC Bank's third quarter earnings.
Analysts expect fee income to grow 15-20 percent, aiding profitability. Fee income was 70 percent of other income and was up 21 percent in Q2 year-on-year.