Banks growth constraints from old and new NPAs came to be the most heavily landed blow again with INR 150 Bln in fresh slippages to 2.8% Net NPAs and a 5.5% of Book in Gross NPAs for India’s largest bank as markets at 0.9 PCR look to bottoming out with 5500 Puts still popular and Futures encouragingly becoming short hedge currency again for Institutions.
SBI has managed a NIM of 3.49% this quarter and investments currently denominated in low yielding CP will significantly buffer the margins to end of this fiscal according to the Bank resident’s statement defending current results (ETNOW). Auto Sales of 131k cars and less than 11.5 mln two wheelers as MUV/SUV sales plateau and trend down in the last bulwark crumbling for the 12 months are just part of the degrowth in the economy as a whole as May IIP was revised downward to -2.8% and June IIP came in a -2.2% showing degrowth of -6% in Capital goods and taking the April June quarter to -1.1% , negating any growth from the rate cuts before the rate clamp shutter down business in July , August and probably September
Consumer durables have been double digit negative in both May and June degrowing 10.5% on year in june with non durables up robustly another 5% allowing them to improve inflation. Better news from trade with a lower import bill from less than 3 tonnes in Gold and Silver imports each makes a crawl at lower CAD possible as also more controls return to the Economy after 22 years of reform under Manmohan Singh
Dabur and other FMCG could return to strength given the consumer non durables sales upticks and continuing robust inflation in the categories even as input inflation subsides. a 9.64% CPI does not discourage category leaders HUL and ITC also from continuing to improve realisations even if the Rupee completes its move only beyond 65 levels
ONGC results were bearable though the markets are unforgiving for the iNR 200 Bln quarter as realisations are likely to remain near this quarters $40 a barrel than last year’s $45 levels and the coming investment uptick within the week could see Oilcos picking up the slack after abig fall as well and oil purchases down for the second successive month will stress the trade this month for sure.
- India Morning Report: Weekend results from Cipla, Sun, vs the ultimate low for india’s production statistics (awardz.wordpress.com)
- State Bank of India Profit Drops on Rising Bad Loans (bloomberg.com)
- India Morning Report: GDP forecasts look for their pound of flesh, india inc reports (This week in Asia on The Banking and Strategy Initiative: advantages.us) (awardz.wordpress.com)
- India Morning Report: Markets steady, India facing uphill task (awardz.wordpress.com)
- India Earnings Season: Bank Results scared by the Rate/fx tuple (HDFC Bank Q1 FY 2014) (awardz.wordpress.com)
- Bank Results season (India Earnings): ICICI Bank keeps showing long term tracking to objectives – Q2 FY2014 (awardz.wordpress.com)
- India Morning Report: Markets watching the airlocks at 1.30 PCR (awardz.wordpress.com)
- Top 30 Most Valuable Brands in India 2013 (trak.in)
- India Morning Report: State Bank of India results scare, IIP for June -3%, $12.27 Bln Deficit (awardz.wordpress.com)
- India Morning Report: IT’s the big short.(Inching towards that 6100 mark, to inch back to 6000~) (awardz.wordpress.com)