In an interview to CNBC-TV18, Kajal Gandhi of ICICI Direct and Mayuresh Joshi of Angel Broking share their view on Bank of Baroda's Q1 numbers.
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.
Worsening asset quality is a worry indeed, but Jignesh Shial, research analyst, IDBI Capital Markets says what is more worrying is that these banks are not growing, putting pressure on margins as well.
IndusInd Bank met Street expectations by reporting a 28.8 percent growth in profit at Rs 447 crore for the quarter ended December 2014, supported by higher other income, net interest income and lower provisions.
Kunal Shah, analyst, Edelweiss says the numbers were in line with expectations. He continues to remain positive on the stock after the management guided 20 percent growth rate by end of this fiscal
Private sector lender‘s net profit grew by 30.3 percent to Rs 430.2 crore the quarter ended September 2014 led by strong other income and lower provisions. Profit in the year-ago period was Rs 330.23 crore.
Kajal Gandhi, ICICI Direct, says that net profitability of SBI, at Rs 3,400 crore, is on the expected lines, however slippages have been higher than estimate. She feels that the stock is likely to correct today. Long-term investors can enter this stock with a target price of Rs 2,700.
State run lender reported a 137% jump in net profit at Rs 3,752 crore for the first quarter ended June 30, 2012. It had a net profit of Rs 1,583 crore in the April-June quarter of 2011-12 fiscal.
Kajal Gandhi, ICICI Direct expects lower incremental slippages in Q1FY13 for banks. “In the coming quarter, I believe that we will not be seeing the same pace of slippages that we have seen in the Q3-Q4 for most PSU banks,†she asserts.
Reliance AMC and Nippon have entered into a deal. Kajal Gandhi of ICICI Direct says, the deal is positive for Reliance Capital. “This is definitely a booster for the company."
Nippon Life Insurance Company has signed an agreement to acquire 26% stake in Reliance Life Insurance, a unit of Reliance Capital. The transaction, however, is subject to necessary regulatory approvals. Kajal Gandhi, Senior Research Analyst, ICICI Securities, in an interview on CNBC-TV18 gave her view on the deal that broke.