RoAs of private banks was in the range of 1.70-2.40 percent, while that of PSU banks was 0.70-1.13 percent in Q1. That said, in terms of ROE, state-owned banks fared better than their private peers.
According to the survey, the net interest margin (NIM) of SCBs remained robust at 3.6 per cent in March 2024.
The RoE expansion expected in the index will be led by capital intensive and cyclical sectors such as auto, capital goods, infrastructure, utilities, telecom, commodities and financials
IDFC plans to focus on quality given the risk in the environment. It plans to focus on larger, well-capitalized high quality corporates. This type of lending will come at much reduced spreads and margins. The bank will look at low risk ways of growing the loan book
Citi's Surendra Goyal expects earnings growth to pick up going ahead. He feels Murthy's return to Infosys will be postive as the company is trying to acknowledge its problems.
A broad collapse of company profits in the developing world shows no sign of abating, forcing investors to tilt portfolios towards sectors such as healthcare or consumer goods where margins are more robust.
After sugar decontrol, the kind of poor return on equities (ROEs) that many sugar companies are generating because of the levy sugar quota will not be there, says Phani Sekhar, fund manager, Angel Broking.
Sanju Verma, MD & CEO of Violet Arch Capital Advisors is bullish on Sadbhav Engineering. "This is one of the few midcap players which actually have an return on equity (ROE) and Return on invested capital (ROIC) of something like 18 to 20 percent which is every comforting," Verma reasoned.