BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Banks are expected to report a strong quarter, benefitting from improving loan growth, net interest margin expansion, and low credit costs.
Consequently, net interest income is expected to grow at 14% YoY and 5% QoQ. NIM will benefit from both repricing of external benchmark lending rate linked loans and utilisation of excess liquidity.
Operating profits will also benefit from part reversal of mark-to-market losses for some banks. Moreover, low credit costs should drive profit after tax growth of 56% YoY.
We factor in loan growth of 19% YoY for the coverage universe in Q2 FY23. Asset quality trends are like to remain stable, with continued moderation in gross non performing asset ratios.
Affordable housing financiers under coverage should continue to see healthy growth trends of 6% QoQ and 29% YoY. Recent rating upgrades will limit rise in cost of fund, with margins stable to marginally higher QoQ.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR