Centrum Broking sees large banks' outlook attractive on strong Q3FY22 growth
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Taking into account the strong Q3FY22 quarter for banks and housing finance companies, the brokerage house Centrum Broking sees large banks' outlook attractive going ahead.
Asset quality further improved for banks during the quarter, the brokerage said, adding that the economy bouncing back sharply in Q3FY22 which also coincided with the festive season, helped lenders report better sequential loan growth.
In housing finance space, the brokerage bets on Can Fin Homes, whereas UTI Asset Management and Aditya Birla Sun Life Asset Management as preferred picks among the asset management companies.
"Asset management companies' core income grew by 3.9 per cent quarter-on-quarter to Rs 9.25 billion as overall/equity 'QAAuM' grew by 3 per cent/6 per cent QoQ. HDFC, Nippon and ABSL AMC performed better while UTI AMC earnings missed estimate led by a sharp contraction in equity yields," the brokerage said.
