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The new base rate calculation method based on banks' marginal cost of funds put in place by the RBI will not shave much off their net interest margins, leading foreign brokerage Jefferies said.
“With inflation now on a sharp decline and expected to stay low, expectations of rate cuts next year have risen," says Bhuvnesh Singh, Barclays.
Private sector lender Axis Bank's third quarter (October-December) net profit is expected to rise around 17% year-on-year to Rs 1,291 crore. Net interest income (NII) or the difference between interest earned and paid out, is likely to grow 14% y-o-y to Rs 2,445 crore, according an analyst estimate by CNBC-Awaz.
Aided by a strong loan growth, Pune-based non-banking finance company -- Bajaj Finance on Friday reported 48% year-on-year jump in its second quarter (July-September) net profit at around Rs 130 crore. The net interest income (NII) or the difference between interest earned and paid out, climbed 36% y-o-y to Rs 442 crore.
The government bail out package for cash-strapped state power distribution companies (Discoms) is unlikely to have any immediate impact on banks, which had loaned them. However, lenders are expected to get long term benefits provided the scheme is implemented right in time, analysts tracking banks said.
State Bank of India (SBI) is expected to report a net profit of Rs 3,580 cr for the fourth quarter of FY12 as against Rs 21 cr a year ago, according to CNBC-TV18 poll. Even though it looks like a phenomenal growth in its net level, analysts tracking the bank refuse to draw any such year-on-year comparison.
The SBI posted forecast beating third quarter numbers. A proud SBI boss Pratip Chaudhury proclaimed, "The worst is over!" Even the SBI shares fell more than 2% on the day of Q3 announcement, the market gave a thumbs up on the day after. The shares today closed at Rs 2,200 , up 3.18% on the NSE. So, is it the right time to buy SBI?
The Supreme Court verdict on multi-crore 2G scam has raised apprehension on the asset quality of banks, already battling to check the rise of non-performing assets. The apex Court on Thursday cancelled licenses of 122 telecom companies, which were allotted by the former telecom minister A Raja.
