Banking Q2 Results Preview - Healthy NII, PAT Growth On YoY-Basis, But QoQ Pressure Rising: ICICI Securities

"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..ICICI Securities Report.We see Q2 FY24 to be broadly similar to Q1 FY24 wherein for private banks (excluding HDFC Bank Ltd.) under coverage, we see healthy net interest income/pre-provision operating profit/profit after tax growth on a YoY-basis at around 15/12/17%, but expect QoQ growth to be under pressure at around 1/-3/-4%. For State Bank of India, we see return on asset moderating slightly to ~1% (versus 1.2% QoQ) due to slight pressure on net interest margin, opex and lower treasury gains.We estimate ~3.6% QoQ and 17.5% YoY credit growth for private banks (excluidng HDFC Bank). NIM had already peaked in H2 FY23 and we estimate upto 10 basis points QoQ moderation for Axis bank Ltd., Bandhan Bank Ltd., Yes Bank Ltd., SBI etc., but see a 15–20 bps dip for Kotak Mahindra Bank Ltd., Karur Vysya Bank Ltd., South India Bank Ltd., etc.; we estimate flattish to positive bias QoQ for RBL Bank Ltd., City Union Bank Ltd. and Federal bank Ltd. We see slippages and credit costs to remain benign and see improvement in gross non-performing asset/net non-performing asset ratio QoQ for almost all banks. Despite soft profit after tax QoQ, we see continued strong headline return on asset/return on equity for most of the banks. We see strong Q2 FY24 from IndusInd Bank Ltd., Karur Vysya Bank, City Union Bank and DCB Bank Ltd. and expect relatively soft quarter for Bandhan Bank, Kotak Mahindra Bank and South Indian Bank..Click on the attachment to read the full report:.BFSI Q2 Results Preview - Earning Momentum Moderates; Growth Upbeat: Dolat Capital.DISCLAIMERThis 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."

Banking Q2 Results Preview - Healthy NII, PAT Growth On YoY-Basis, But QoQ Pressure Rising: ICICI Securities

Net interest income, pre-provision operating profit growth healthy on YoY-basis, but pressure on QoQ-basis.

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Banking Q2 Results Preview - Healthy NII, PAT Growth On YoY-Basis, But QoQ Pressure Rising: ICICI Securities

Net interest income, pre-provision operating profit growth healthy on YoY-basis, but pressure on QoQ-basis.

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