Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Key takeaways
Margins outlook remains stable with a marginal negative bias. Full impact of recent
hikes (December—50 bps PLR and 25 bps base rate and January—25 bps of base rate
and PLR). Pricing power remains with banks on the backdrop of relatively strong credit
growth. However, the bank would continuously evaluate margins and asset quality.
Trends on loan growth improving. There is a perceptible shift towards working capital
requirements apart from infrastructure (which led credit growth in recent quarters) in
3QFY11. Credit growth is relatively weak only in the SME segment. In retail, expectations
of a price decline are driving down home loan volume growth.
1HFY11 saw peak slippages for the bank. Barring any episodic events, the bank is not
witnessing any concern in any of the sectors within its loan portfolio.
Investments in new branches to continue at similar trends levels. The bank will look
to close FY2011E at about 1,250-1,300 branches and a further 250-300 branches in
FY2012E. The bank is looking at maintaining CASA ratio at 40% levels (average CASA
ratio) and would calibrate growth, if needed.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Key takeaways
Margins outlook remains stable with a marginal negative bias. Full impact of recent
hikes (December—50 bps PLR and 25 bps base rate and January—25 bps of base rate
and PLR). Pricing power remains with banks on the backdrop of relatively strong credit
growth. However, the bank would continuously evaluate margins and asset quality.
Trends on loan growth improving. There is a perceptible shift towards working capital
requirements apart from infrastructure (which led credit growth in recent quarters) in
3QFY11. Credit growth is relatively weak only in the SME segment. In retail, expectations
of a price decline are driving down home loan volume growth.
1HFY11 saw peak slippages for the bank. Barring any episodic events, the bank is not
witnessing any concern in any of the sectors within its loan portfolio.
Investments in new branches to continue at similar trends levels. The bank will look
to close FY2011E at about 1,250-1,300 branches and a further 250-300 branches in
FY2012E. The bank is looking at maintaining CASA ratio at 40% levels (average CASA
ratio) and would calibrate growth, if needed.
No comments:
Post a Comment