Banks Q4 Preview- Continued Pressure On NII, PAT, But Deposits Growth To Outpace Loan Growth: ICICI Securities

"NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.We see continued pressure on net interest margin on the back of moderating loan growth (up 3.5% QoQ) and net interest margin (10-15 basis points QoQ dip), though benign credit costs (including part reversals of AIF provisions) should somewhat cushion profit after tax growth.We see systemic deposits growth accelerating (~5.5% QoQ), though reckon some seasonal tailwinds alongside. Interestingly, provisional update from banks comprising ~50% of systemic credit/deposits indicates clear trend of improvement in the loan to deposits ratio QoQ, which holds true for even select PSU banks with low LDR.Not with standing concerns on softening loan growth and NIM moderation (due to policy rates), the sustainability of healthy deposits growth and easing systemic liquidity could aid re-rating among private banks, as asset quality and headline return on assets remain strong..Click on the attachment to read the full report:.Patanjali Misleading Ads Case: Supreme Court Calls Out Uttarakhand Licensing Authority.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Banks Q4 Preview- Continued Pressure On NII, PAT, But Deposits Growth To Outpace Loan Growth: ICICI Securities

Sustained healthy deposits growth and easing liquidity could aid re-rating

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Banks Q4 Preview- Continued Pressure On NII, PAT, But Deposits Growth To Outpace Loan Growth: ICICI Securities

Sustained healthy deposits growth and easing liquidity could aid re-rating

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