New Delhi, Jan 17 (SocialNews.XYZ) Private sector bank stocks were the biggest losers on Wednesday as the Sensex plunged 1,200 points.
Index heavyweight, HDFC Bank is down 6.7 per cent, Kotak Mahindra is down more than 3 per cent, Axis Bank is down 2 per cent, ICICI Bank is down 2 per cent.
AU Bank is down 3.5 per cent, RBL Bank is down 3 per cent, Yes Bank is down 3 per cent, RBL Bank is down 3 per cent. BSE Private Banks index is down more than 3 per cent. South Indian Bank is down more than 4 per cent, Union Bank is down 3 per cent.
Elara Securities said in a report that HDFC Bank’s Q3 PAT of Rs 163.7 billion was broadly in line with our estimates following higher other income (stake sale in Bandhan Bank) and lower tax, even as core profitability fell short of expectations.
The key highlight was higher-than-expected strain on NIM (even on trimmed expectations), given higher funding cost pressures.
Given the regulator’s focus on CD ratio and HDFCB already at 110 per cent, with LCR of 110 per cent, the bank has much to balance (growth versus NIM conundrum).
While one may argue on bottoming of earnings, we believe recovery may take longer and the stock may see time correction till investors find merit in execution, the report said.
(Sanjeev Sharma can be reached at Sanjeev.s@ians.in)
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz