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Quote on RBI MPC Maintains Policy Rate at 6.5% Amid Inflation and Growth Projections by Ajit Kabi, LKP Securities Below the Quote on the RBI MPC Maintains Policy Rate at 6.5% Amid Inflation and Growth Projections by Ajit Kabi, Banking analyst at LKP Securities   RBI has kept the policy rate unchanged at 6.5% in the recent MPC meet. The inflation may not cause worries (excluding CPI). The CPI forecast for FY24 has raised to 5.4% from 5.1% estimated earlier. Moreover, the real GDP growth forecast was pegged at 6.6%. RBI MPC remains resolute in its commitment to align inflatio...
Quote on RBI MPC Maintains Policy Rate at 6.5% Amid Inflation and Growth Projections by Ajit Kabi, LKP Securities
Quote on RBI MPC Maintains Policy Rate at 6.5% Amid Inflation and Growth Projections by Ajit Kabi, LKP Securities
Source: LKP Securities Ltd
10/08/2023 12:35:57 PM
Quote on the Outlook on NBFC and Bank Earnings from Ajit Kabi, LKP Securities Below the Quote on the Outlook on NBFC and Bank Earnings from Ajit Kabi, Banking analyst at LKP Securities   We expect the earnings of Banks and NBFCs to stay stable in Q1 FY24. The loan growth is expected to witness sequential jump. Factoring pre-result release of several banks. We expect the loan growth to be in mid teens for large banks. The vehicle financing NBFCs to witness strong disbursement. Furthermore, Gold Financiers are likely to post good growth considerin...
Quote on the Outlook on NBFC and Bank Earnings from Ajit Kabi, LKP Securities
Quote on the Outlook on NBFC and Bank Earnings from Ajit Kabi, LKP Securities
Source: LKP Securities Ltd
9/07/2023 8:58:18 AM
Quote on the Outlook for PSU Banks from Ajit Kabi, LKP Securities Below the Quote on the outlook for PSU Banks from Ajit Kabi, Banking Analyst at LKP Securities   Public banks have performed well post COVID. The asset quality cycle tailwind has resulted in improvement in NPA ratios. The corporate credit woes are behind us. Therefore we expect the credit cost normalisation in the coming period. As per as growth is concerned, the PSU Banks are likely to report strong growth factoring capex improvement. The large PSU Banks like SBIN and BO...
Quote on the Outlook for PSU Banks from Ajit Kabi, LKP Securities
Quote on the Outlook for PSU Banks from Ajit Kabi, LKP Securities
Source: LKP Securities Ltd
4/07/2023 4:50:13 PM
`Valuation gap between ICICI Bank and HDFC Bank may not widen in short run` The valuation gap between the two major private sector banks – HDFC Bank (post merger of HDFC Ltd) and the ICICI Bank Ltd - may not widen in the short run, said an analyst with LKP Securities. “Post merger of HDFC and HDFC Bank, we believe, the valuation re-rerating will be delayed factoring margin squeeze,” Ajit Kabi, Banking Analyst at LKP Securities said. "The impact on the return profile will be keenly watched in the coming period. Hence, in the short run, we ...
`Valuation gap between ICICI Bank and HDFC Bank may not widen in short run`
`Valuation gap between ICICI Bank and HDFC Bank may not widen in short run`
Source: IANS
4/07/2023 10:28:11 AM
Quote on Valuation Gap between ICICI Bank & HDFC Bank post the HDFC merger from Ajit Kabi,LKP Securities Below the Quote on Valuation Gap between ICICI Bank & HDFC Bank post the HDFC merger from Ajit Kabi, Banking analyst at LKP Securities. Both the large Pvt. Sector banks have performed significantly well since 2-3 years. Nevertheless, ICICI Bank has outperformed the sector with improvement in credit quality and growth across verticals.The valuation gap between these two banks have narrowed down. Post merger of HDFC and HDFC Bank, we believe, the valuation re-rerating will be delaye...
Quote on Valuation Gap between ICICI Bank & HDFC Bank post the HDFC merger from Ajit Kabi,LKP Securities
Quote on Valuation Gap between ICICI Bank & HDFC Bank post the HDFC merger from Ajit Kabi,LKP Securities
Source: LKP Securities Ltd
3/07/2023 4:38:20 PM
Quote on Bank`s CD ratio: As the deposit growth rate is slower than the credit growth rate Says Ajit Kabi, LKP Securities Below Quote on Bank`s CD ratio By Ajit Kabi, Banking analyst at LKP Securities As the deposit growth rate is slower than the credit growth rate; we believe the CDR to rise this quarter. CDR is expected to stay flat for FY24 as the deposit growth is likely to go up. The higher CDR obstructs the banks to grow as the banks have to maintain an adequate regulatory LCR level. We estimate the credit growth to be around 15% for FY24; around 400bps higher of India’s n...
Quote on Bank`s CD ratio: As the deposit growth rate is slower than the credit growth rate Says Ajit Kabi, LKP Securities
Quote on Bank`s CD ratio: As the deposit growth rate is slower than the credit growth rate Says Ajit Kabi, LKP Securities
Source: LKP Securities
11/04/2023 3:25:12 PM
Quote on Banking sector outlook : Additionally, the investment is more into Government Sec on SLR account Says Ajit Kabi, LKP Securities Below the Indian Banking sector outlook from Ajit Kabi, Banking analyst at LKP Securities   The current global banking crisis, especially Credit Suisse and few USA Banks is likely to bring some regulatory measures across the global banking system. The Auditing and financial reporting may be more stringent along with addressing liquidity and duration risk in a strict way. Post Great Financial crisis, the regulatory changes have put more emphasis on Credit risk, howeve...
Quote on Banking sector outlook : Additionally, the investment is more into Government Sec on SLR account Says Ajit Kabi, LKP Securities
Quote on Banking sector outlook : Additionally, the investment is more into Government Sec on SLR account Says Ajit Kabi, LKP Securities
Source: LKP Securities Ltd
21/03/2023 5:20:00 PM
RBI Monetary Policy Reaction : RBI to continue vigil on inflation outlook Says Ajit Kabi, LKP Securities Below are View On RBI announcement  By Ajit Kabi, Banking Analyst at LKP Securities  RBI raised policy repo rate by 25bps to 6.5%. 4 out of 6 members of MPC voted in favour of hiking rates. RBI to continue vigil on inflation outlook. According to the RBI Governor, Inflation is likely to stay at 5.6% for 4QFY23, and expected to stay above 4% in FY24. Policy rate still trails Pre-COVID level. The rate hikes are likely to raise the EMI burden for floating rate link...
RBI Monetary Policy Reaction : RBI to continue vigil on inflation outlook Says Ajit Kabi, LKP Securities
RBI Monetary Policy Reaction : RBI to continue vigil on inflation outlook Says Ajit Kabi, LKP Securities
Source: LKP Securities Ltd
8/02/2023 12:26:17 PM
As expected, RBI has increased repo by 35bps to 6.25% Says Ajit Kabi, LKP Securities Below Quote on Repo rate hike By Ajit Kabi, Banking Analyst at LKP Securities  "As expected, RBI has increased repo by 35bps to 6.25%. The banks may witness uptick in yields as loan repricing will be sooner than repricing of deposits. Moreover, increasing share in Floating rate loans is likely to keep the NIMs intact."   Above views are of the author and not of the website kindly read disclaimer
As expected, RBI has increased repo by 35bps to 6.25% Says Ajit Kabi, LKP Securities
As expected, RBI has increased repo by 35bps to 6.25% Says Ajit Kabi, LKP Securities
Source: LKP Securities
7/12/2022 12:53:10 PM
View on PSU Banks: The superior customer reach and high number of branches are good for the banks Says Ajit Kabi,LKP Securities Below View On PSU Banks By Ajit Kabi, Banking Analyst at LKP Securities "For the PSU banks, the asset quality concerns are behind because of major write-offs and recoveries from legacy NPAs. The public banks are playing well with the contemporary theme of growth and margins. The superior customer reach and high number of branches are good for the banks. Therefore, we can witness strong credit growth. The lower CDR may provide further room for growth. On the margin front, the...
View on PSU Banks: The superior customer reach and high number of branches are good for the banks Says Ajit Kabi,LKP Securities
View on PSU Banks: The superior customer reach and high number of branches are good for the banks Says Ajit Kabi,LKP Securities
Source: LKP Securities Ltd
29/11/2022 5:32:38 PM
PSB stocks on 52-week high riding on record profits, double-digit loan growth Public sector bank stocks have rallied more than 25 per cent post their stellar Q2 financial results with net profit jumping by 50 per cent. Union Bank of India stock price is up by 60.8 per cent over the last month among the PSU bank stocks. Bank of India is up by 56.1 per cent during the month while UCO Bank is up by 32.4 per cent. The Nifty PSU Bank index made a new 52-week high on Friday. The index was up by 21.35 per cent last month. Amber Pabreja, Founder and CEO of Trendlyne, ...
PSB stocks on 52-week high riding on record profits, double-digit loan growth
PSB stocks on 52-week high riding on record profits, double-digit loan growth
Source: IANS
19/11/2022 12:34:30 PM
Quote on Nifty PSU Banks: PSU banks were trading at an inexpensive valuation for a long time Says Ajit Kabi,LKP Securities Quote on Nifty PSU Banks up by 26% in 1 month By Ajit Kabi, Banking Analyst at LKP Securities "PSU banks were trading at an inexpensive valuation for a long time. The lower growth capital and legacy NPAs were the reason for underperformance. However, the concern of asset quality and growth are way behind. The large public banks have delivered strong growth and improvement in credit quality. Therefore, PSU banks are likely to perform well in mid-run. Bank of Baroda, Canara Bank ar...
Quote on Nifty PSU Banks: PSU banks were trading at an inexpensive valuation for a long time Says Ajit Kabi,LKP Securities
Quote on Nifty PSU Banks: PSU banks were trading at an inexpensive valuation for a long time Says Ajit Kabi,LKP Securities
Source: LKP Securities Ltd
9/11/2022 5:02:03 PM
RBI Monetary Policy : The repo hike is likely to be a welcome move Says Ajit Kabi, LKP Securities Below are View On RBI announcement  By Ajit Kabi, Banking Analyst at LKP Securities  "The 50bps hike in policy rate to 5.9% was expected. However, the inflation estimates were the key monitorable. The inflation was expected to be at 6% for the second half of the financial year and GDP growth is expected to be at 7% for the entire fiscal. Factoring the daunting challenge of inflation, the repo hike is likely to be a welcome move. The rate hike was earlier anti...
RBI Monetary Policy : The repo hike is likely to be a welcome move Says Ajit Kabi, LKP Securities
RBI Monetary Policy : The repo hike is likely to be a welcome move Says Ajit Kabi, LKP Securities
Source: LKP Securities Ltd
30/09/2022 1:59:31 PM
View on RBI announcement By Ajit Kabi, LKP Securities Below are View On RBI announcement  By Ajit Kabi, Banking Analyst at LKP Securities  "RBI has raised the repo rate by 40bps with immediate effect and CRR by 50bps by 21st May 2022. The rate hike was much-anticipated factoring rise in food and general inflation. The rate hike is likely to shrink liquidity in the economy overall. As per as the banks are concerned the cost of funds is likely to increase so does the cost of deposits. It may translate into NIM...
View on RBI announcement By Ajit Kabi, LKP Securities
View on RBI announcement By Ajit Kabi, LKP Securities
Source: LKP Securities Ltd
4/05/2022 4:12:41 PM
Quote on HDFC Bank and HDFC Ltd merger By Ajit Kabi, LKP Securities Below Is Quote on HDFC Bank and HDFC Ltd merger By Ajit Kabi, LKP Securities "The amalgamation between HDFC Bank and HDFC Ltd is a fruitful deal for both the parties. As a part of the merger between HDFC Ltd. and HDFC Bank, 42 shares of HDFC Bank would be given for every 25 shares of HDFC Ltd. Post the amalgamation, HDFC Bank will be 100% owned by public shareholders and existing shareholders of HDFC Ltd. will own 41% stake in the bank. The foreign stake is around 8% in the bank ...
Quote on HDFC Bank and HDFC Ltd merger By Ajit Kabi, LKP Securities
Quote on HDFC Bank and HDFC Ltd merger By Ajit Kabi, LKP Securities
Source: LKP Securities Ltd
4/04/2022 3:13:10 PM
View on Axis Bank : Axis Bank Post Citi Bank Acquisition By Ajit Kabi , LKP Securities Below are Views On Axis Bank : Axis Bank Post Citi Bank Acquisition By Ajit Kabi, BFSI Analyst at LKP Securities "We maintain our positive outlook on Axis Bank, post the Citi Bank consumer banking deal. The deal may cost around Rs123bn to Axis bank, which will be paid sometime between 9 - 12 months, subjected to regulatory approvals. The deal would help strengthen Axis Bank balance sheet and reduce the gap against its peers. The deal may have an impact of 180-200 bps on th...
View on Axis Bank : Axis Bank Post Citi Bank Acquisition By Ajit Kabi , LKP Securities
View on Axis Bank : Axis Bank Post Citi Bank Acquisition By Ajit Kabi , LKP Securities
Source: LKP Securities Ltd
1/04/2022 10:33:53 AM