Sameer Bhise News Today

​​Shares of state-owned banks, non-banking finance companies (NBFCs) and infrastructure firms plunged as much as 10% on Monday following the Reserve Bank of Indias tougher draft guidelines on the financing and accounting of project loans.

The proposed stricter lending criteria, with additional provisioning, are aimed at preventing accounting shocks but could potentially hurt balance sheets of these entities and exert pressure on their valuation multiples, analysts and economists said.

POONAWALLA FINCORP LIMITED Q4 FY2023-24 RESULTS CONFERENCE CALL APRIL 29, 2024 MANAGEMENT: MR. ABHAY BHUTADA -...

The private sector lender reported a healthy performance in Q4, with 17% year-on-year (YoY) growth in profit amid contained opex and provisions. The pace of NIM contraction decelerated, down 3 bps quarter-on-quarter (QoQ) at 4.4%.

HDFC Bank reported fairly strong quarterly results over the weekend, but shares of the countrys largest private sector lender declined over 1 per cent on Monday afternoon. This even as the broader BSE Sensex was up 0.5 per cent.

"Risk weight changes have been talked about for some time now. Finally, they have been put into place. Expect moderation on the unsecured side, more so with respect to some of the fintech-led originations, we expect some bit of a moderation on that side. At the same time, over the next 6 to 12 months as these changes play out, it would allow some of the well-capitalised companies to emerge stronger. "

Analysts believe that HDFC Banks near-term performance may be impacted by factors such as lower starting point of HDFC Limiteds network and margin drag due to liquidity build-up before the merger. However, they still have confidence in the banks long-term growth and asset quality. The stock is expected to underperform in the near-term, but analysts recommend taking a medium-term view of 18 to 24 months, as the bank is considered to be at an attractive price. The target price for the stock is Rs ...

In fact, if you see last year, the whole narrative was interest rates were on the rise and to that extent there was a natural inclination to play banks which worked out beautifully towards the end of the last year.

Poonawalla Fincorp Limited Q1 FY 2023-24 Earnings Conference Call July 24, 2023 MANAGEMENT: MR. ABHAY BHUTADA -...

Microfinance Sector: Analysts expect the sector to see strong loan growth in FY24 and FY25 driven by increase in ticket sizes, strong customer acquisitions, and regulatory tailwinds