The bank’s profit growth was aided by a healthy growth in advances, contained operating expenses, and low credit costs
The stock is undervalued and some positive news flow can lead to a re-rating
The bank posted an all-round show at a time when the banking sector is struggling
The real attraction for the potential buyer will be IDBI Bank’s huge deposits of Rs 277,548 crore
Profit performance aided by a strong loan growth, higher margins, and a sharp fall in provisions
The current volatility in the SBI stock following the Adani saga has made valuations attractive and presents a good opportunity to investors
Given the strong earnings growth outlook, HDFC Bank’s stock can outperform as merger-related uncertainties abate
ICICI Bank has not only outperformed the benchmark indices Nifty and Bank Nifty, but also delivered higher returns compared to HDFC Bank and Kotak Bank
While the re-rating of HDFC Bank will be contingent on merger-related developments, the profitability outlook is still very strong
SBI’s distressed valuation is pricing in the most risks ranging from the government ownership to the weakening macroeconomic environment
FY22 earnings reflect a strong comeback by ICICI Bank
HDFC Bank’s earnings growth in Q4FY22 could have been over 30 percent, had it not created contingency provisions of Rs 1,000 crore during the quarter. While such fine-tuning of numbers leads to ‘boring consistency’ in HDFC Bank’s numbers, it highlights the bank’s ability to spread risks across cycles
Clearly, it has been a dream performance by SBI in the nine months of FY22 (9M FY22)
With limited downside to earnings, ICICI Bank offers best risk-return in the banking space
There are public sector banks which still have good valuations and asset quality metrics even after accounting for bad assets, says IV Subramaniam, MD & CIO Quantum Advisors & Director, Quantum AMC.