Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

Banking stocks aid in cutting losses
Fri, 18 May 01:30 pm

While the Indian stock markets continued to trade below the dotted line, buying interest during the previous two hours led the indices to cut their losses of the first half. Stocks from the banking space are currently in favour followed by stocks from the oil & gas and FMCG spaces. Auto and engineering stocks are trading weak at the moment.

The BSE-Sensex is trading lower by about 75 points (0.5%), while the NSE-Nifty is down by about 30 points or 0.6%. Stocks from the mid and small cap spaces are also trading weak with the BSE Mid Cap and BSE Small Cap indices down by about 0.6% and 0.8% respectively. The Rupee is trading at Rs 54.79 to the US dollar.

Stocks of investment and financing companies are trading mixed with SREI Infrastructure Finance, Shriram Transport Finance, Housing Development Finance Company (HDFC) trading weak while Infrastructure Development Finance Company and Bajaj Finance are trading firm. A leading financial daily has reported that higher interest rates and tight liquidity led to sluggish growth in the loan portfolio of housing finance companies (HFC's) in FY12. According to National Housing Bank data, the outstanding loans on the books of 54 HFC's grew by 18% YoY as compared to 22% YoY growth registered last year. Public sector banks backed by low-cost savings and current account deposits were able to maintain 18% growth in the loan portfolio for the period April-December 2011. NHB has projected home loans to grow by 18-20% in FY13.

Majority of the public sector bank stocks are trading in red with Andhra Bank and Union Bank being the biggest losers. State Bank of India (SBI) declared its FY12 (financial year 2012) results recently. The bank's net interest income grew by 33% YoY for the full year FY12. This was on the back of a 15% YoY growth in advances. For the full year, SBI's net profits rose by 42% YoY in FY12. The bank's other income fell by 9% YoY for the full year FY12. As for the NIMs (net interest margins), the bank managed to contain the cost of funds as NIMs moved up from 3.3% in FY11 to 3.5% in FY1. However, at the same time, Net NPAs levels increased to 1.8% in FY12 from 1.6% in FY11. At the gross level the NPA levels moved up from 3.3% in FY11 to 4.4% in the current year. At the end of the year, capital adequacy ratio stood at 13.9% at the end of FY12 as per Basel II, compared to 12% at the end of FY11.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Banking stocks aid in cutting losses". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.