This is the second large PSU quoting a loss this quarter, says Jignesh Shial of IDBI Capital Markets. He says on the asset quality front, there was expectation of some deterioration, but gross NPA at 5.4 percent is too much and the stock is likely to react.
Vaibhav Agarwal of Angel Broking says on the asset quality front, the bank has reported good numbers. It indicates that like its third quarter, in the fourth quarter too SBI did good recovery and upgrades, he says.
Jignesh Shial, research analyst at IDBI Capital Markets said the numbers seem okay. He said the bank‘s profit took a hit on higher provisioning. At an operational level, the performance seems stable, he told CNBC-TV18.
In an interview to CNBC-TV18, Vaibhav Agrawal of Angel Broking and Jignesh Shial of IDBI Capital analyse HDFC Bank's Q4 results and their outlook on the stock.
Bank of India's third quarter net profit fell 70.4 percent year-on-year to Rs 173.4 crore on higher provisions and employee expenses. Moreover, slow growth in net interest income and lower other income, operating profit impacted the profitability during the quarter.
Jignesh Shial, Banking Anlayst, IDBI Capital, says approval of equity dilution in HDFC Bank would help boost credit growth and the stock is a buy at current juncture.
The Foreign Investment Promotion Board had cleared HDFC Bank‘s proposal in December and had cleared Lupin‘s FDI proposal in November.
Shial is bullish on public sector banks especially State Bank of India, Bank of Baroda and Punjab National Bank.
According to Jignesh Shial, Research Analyst at IDBI Cap Markets, one may prefer IDFC with long term view.
According to Jignesh Shial, Research Analyst at IDBI Cap Markets, HDFC Bank is a top pick among the private banking space.
Jignesh Shial, research analyst, IDBI Capital Markets likes HDFC Bank the most among private banks and State Bank of India among public sector banks. He is also bullish on City Union Bank, Karur Vysya Bank and Federal Bank.
Jignesh Shial says one parameter where Kotak would be leading Axis Bank would be return on assets (RoAs). RoA of Kotak is above 2 percent and whereas for Axis it would be 1.8-1.9.
Jignesh Shial, banking anlayst at IDBI Capital recommends accumulating Kotak Mahindra Bank.
Jignesh Shial of IDBI Capital Markets wants to hear the management commentary on the kind of corporate loan pickup the bank is seeing.
India's second largest private sector lender HDFC Bank met street expectations with the second quarter net profit rising 20.1 percent to Rs 2,380 crore compared to Rs 1,982 crore in same quarter last year supported by higher other income and net interest income by impacted by higher provisions.
Even the Rs 14,000 crore earmarked by the government for capital infusion into banks may not help solve issues now, says Jignesh Shial, IDBI Capital Markets. He does not advocate buying PSUs only on the basis of recapitalisation.