Banks share price target

We visited Lucknow (more than 12% of credit market in UP with advances base of ~Rs700bn) and Kanpur (second largest with >6% credit market, Rs400bn) to interact with key market participants including housing financiers, gold financiers, SME lenders, MFIs, vehicle dealers, and intermediaries.

The Monetary Policy Committee (MPC) decided by a majority of five members out of six to further hike the policy repo rate, in a moderate quantum of 35bps to 6.25%, today.

Bank sectoral credit deployment data for Oct’22 suggests YoY uptick across verticals: 22.5% in services, 20.2% in retail credit, and 13.6% in agri and industry portfolios each.

In this report, we pen down a few notable trends in operating performance of housing
finance companies (HFCs). We also highlight how they fared vis-à-vis I-Sec expectations and against each other.

Operating performance of banks under our coverage demonstrated an upbeat stance on advance growth (up 5% QoQ/ 21% YoY), credit cost outlook, NIM expansion and limited treasury hit.

To provide a great finale to a multi-day conference, on Day-3 of ICICI Securities India Financials Conference 2022, leading private banks, insurance companies, MFIs and others shared insights and thoughts on being future-ready and building capabilities for growth.

We concluded the action-packed ICICI Securities India Financials Conference 2022 from November 16-18 with the underlying theme ‘New-Age, New-Edge, New- Pledge’.

Post the enriching and valuable insights on Day-1 with corporate representatives
emphasising the essence of ‘New-Age, New-Edge, New-Pledge’, Day-2 of ICICI Securities India Financials Conference 2022 saw representation from more than 10 corporate entities.