BFSI Q2 Results Preview - Earning Momentum Moderates; Growth Upbeat: Dolat Capital

"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.Earnings for banks will continue to benefit from healthy credit growth and low credit costs. However, margin compression, elevated opex, and muted treasury income will result in moderation in profit after tax growth (up 15% YoY excluding of HDFC Bank Ltd.). Net interest income is expected to grow by 18% YoY and 3% QoQ for coverage banks (excluding HDFC Bank).Public sector banks should continue to see stable to improving net interest margin, benefitting from high share of marginal cost of fund based lending rate loans which are repricing with a lag. We factor in loan growth of 15% YoY and 3.5% QoQ (excluding HDFC Bank) for banks under coverage. Contained asset quality will continue to aid profitability, pre-provision operating profit growth at 10% YoY. Many PSBs and mid-sized banks could continue to make contingent provisions in preparation of transition to expected credit loss framework. Affordable housing financiers are expected to report robust growth trends at 6% QoQ and 28% YoY, along with improving asset quality. Rise in cost of fund to impact spreads across housing finance companies. Gold loan non-banking financial companies will face a seasonally weak quarter, but customer additions should strengthen..Click on the attachment to read the full report:.Q2 FY24 Results Preview - A Quarter Of Strong Earnings Fueled By Domestic Cyclicals: Motilal Oswal.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."

BFSI Q2 Results Preview - Earning Momentum Moderates; Growth Upbeat: Dolat Capital

Earnings for banks will continue to benefit from healthy credit growth and low credit costs.

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BFSI Q2 Results Preview - Earning Momentum Moderates; Growth Upbeat: Dolat Capital

Earnings for banks will continue to benefit from healthy credit growth and low credit costs.

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