In addition, unlike the previous quarter, we don’t have any concerns about treasury losses as well this quarter as overall yields have been marginally lower than in 1QFY23”, Kotak Institutional Equities said in a recent note to investors. As compared to the previous quarter, we should see NIM start improving as the loans linked to MCLR/EBLR have started to re-price to reflect the new policy rates. We expect NII growth to bounce back at 17% YoY on the back of 15% YoY loan growth. “We expect banks under coverage to report 56% year on year (YoY) earnings growth, led by 26% YoY operating profit growth. In the June quarter, bond yields surged 61 bps and by 31 bps in the March quarter. Overall bond yields have fallen 5 basis points (bps) in the September quarter, the first drop after four quarters. Analysts also expect treasury losses for the lenders to be minimal as bond yields were stable in July and August after rising in September. All the banks reported a jump in loan disbursals in the June quarter. This will lead to improvement in the net interest margins (NIM).
Analysts said the sharp 190-basis-point increase in the policy rate since May and its transmission will lead to higher net interest income (NII). Investors continued buying banking stocks amid expectations of strong growth in the September quarter on the back of healthy margins and a drop in loan loss provisioning. Pharma Industry Conclave Unlocking opportunities in Metal and Mining.Deloitte Best Managed Companies 2022 Sustainability 100+.
NIFTY BANK MONEYCONTROL SERIES
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