Quote on Banking sector business updates by Mr. Jyoti Roy, Angel One Ltd
Below is quote on Banking sector business updates by Mr. Jyoti Roy - DVP- Equity Strategist, Angel One Ltd
IndusInd Bank (IIB) has reported strong business momentum for Q2FY22 as advances have registered a growth of 5% QoQ to Rs. 2,21,821 crore. Deposits have registered a growth of 3% QoQ to 2,75,486 crore while CASA ratio was stable at 42.1%. Similarly HDFC bank Federal Bank too have reported strong sequential growth of 4.4% and 3.4% in advances for Q2FY22. Overall the business updates reported by HDFC Bank, Federal Bank and IIB points to a quick rebound in business for the banks post a slowdown in Q1FY22. We expect a sequential improvement in advances and asset quality along with decline in credit costs for most of the larger banks and for few of the mid sized banks with focus on secured loans. However there will be some spillover in asset quality stress and credit costs for MFI focused banks. Post the release of the business numbers we maintain a positive outlook on IIB. We also maintain our BUY rating on HDFC Bank and Federal bank with price targets of Rs. 1,859 and Rs. 110 respectively.
Above views are of the author and not of the website kindly read disclaimer
Tag News
Quote on Silver : Silver price falls in recent weeks Says Prathamesh Mallya, Angel One