Banks look for Fee Income push (India Earnings Season)

An HDFC Bank Branch in Hyderabad
Image via Wikipedia

Despite paltry box office pickings of just Rs 1300 Crores for the Corporate Finance teams, private sector banks are set to make a profitable killing for the quarter’s results led by Investment based products, bancassurance and commercial banking charges on Trade and retail customers. The kicker is almost 40-50% for Private Banks like Kotak and HDFC Bank while even PNB and UBI will bolster their effective interest income growth with 20% growth in fee income.

Banks have recently been allowed multiple ( up to 4) insurance partners for their cross-sell desks in wealth management and even longstanding wannabes like Indian Bank will pursue the course to bolster their banking incomes. Axis and HDFC Bank expect almost a fifth of their income from fee based lines

Also deals may be looking up in the latter half of the year if retail regains color and FD”i approvals come through

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