Bank Results Season: Kotak does operate in a saturated market segment of its own

Kotak again proved with today’s results that its ins on not bothering to reinvent themselves have been playing to the old Goldman Sachs gallery and not really going anywhere on the business learning curve. Couple that with another likely two year holiday till it starts to wind down promoter stakes and it is ripe for an Ingovern/Veritas hit which its strong fundamentals can resist easily. Private Equity must be thinking of the prospects of buying this 50% promoter stake daily but seem to have no partnership basis with Uday Kotak

A true smaller range was never ever found again!

Net Interest Income is reaching a degree of scale at INR 7.20 B and the Net NPAs are as suspected rising as it akes out of its existing customer set and splashes a little likely to recede again. One wonders if someone can really revamp that governing structure in place, each manager at his island of incompetence with the HCL GPS device in hand

NIMs are its strength at 4.7% Gross Lending income (only Interest) is up to INR 24.7 B (DJ wires)

Back to the banks then, Kotak having totted up Gross NPAs to 1.4% and NIMs saddening to 4.7% now at 33% higher than the Industry highs of 3.5% among Private and Public sector banks. Anyone who can get a more than 20% credit growth in their conservative forward statements is a shoo in into any decently managed portfolio as the midday correction on sales growth to INR7.2 B definitely brings in Kotak to a short list. Net Profits of the group were INR 2824 M and I would like them to scale a mark of a 1 B in  profits every quarter so the growth in advances and the 7% campaign’s impact on CASA are welcome. CASA is now 22% Advances and Depsits grew more than 30%

India Earnings season: (Bank Results Season) : Axis grows NPA beyond expectations

As usual the NPAs of 687 cr or 6.87 bln would be marked to high growth in some long term analysis with NIMs still 3.75% and gross NPAs still 1.10%

CAR also seems ok-ish and not too great at 11.78% Can’t match the growth in NPAs to a PCR of 87.7%, harddly management attempt at efficiency, likely an anachronism. Write offs as expected never went near

Images_IRRIDB0210_DSC_3980
Image by IRRI Images via Flickr

even 2-3% of net worth with a NPAT of 11.5 bln above expectations. NII is 21.4 bln and growth in sales is 23% (incl other income) Asset book must have grown largely in retail

I am ready to short every fin stock at 5050, probably results season is good but the marks have been reached

Bank Results season: What’s so great about HDFC Bank(Q3 2012)?

Headline results at Gross NPAs up to INR 22.02 bln from below 20 bln last quarter and a NIM of 4.1% with Gross NPAs down to 1.03% vs 1.11%

December 2011 gross income topline has come to INR 86.22 bln or 7.5% up on quarter. September 2011 had grown income to $1.6 bln by Indian GAAP or nearly INR 79.5 bln up 37% from September 2010 despite the bad credit conditions that actually meant INR 30 bln in NII and INR 12 bln in Other income ( Fee  and non interest income) at 4.1%.

October saw a marginal pullback in credit figures as well NII growth should be closer to 20% as the bank has grown assets in the new quarter and NIM is good at 4.1% As I expected, Cost income ratio has come down from 48.7% with Loan income at two thirds, of the total topline, branch costs should be controlled to lower 40% levels

Net interest income at INR 31.16 bln and Other income at INR 14.20 bln are also thus higher on September but NII has a yoy growth of 12% down from 16% in September  YOY growth in total income (Indian GAAP) and profits is nearly 35%

Net Profits increased to INR 14.29 bln up 19% on quarter reflecting the seasonal growth in October, year on year growth close to 40% while growing Provision Coverage Ratio to 80% against the required 56% improving Cost Income to 46.7% despite 420 new branches from last year December and 340 were new cities in the bank’s distribution network. ATMs grew from 5000 to 7110.

Deposit growth of 21% on the year despite a CASA of 47.7% and interest rates having plateaued at a peak of around 9.5% and 11% (less than 1 year lending) CASA deposits are now INR 700 bln maintaining the Sept 30 figure of INR 690 bln. Tier I ratio is 11.2% before 3Q profits CASA and other deposits had grown 6.5% and 13% from the June quarter and have not gone down since

Provisions are lower by 50% at INR 3.29 bln Retail is 51% of the book and wholesale 49% with retail loans having grown in the latest quarter at 29% yoy against 15% in wholesale as the bank shuts down ipon its short and medium term lending to reduce risk

Bank Results Season: HDFC Bank showcases awesome retail growth

An HDFC Bank Branch in Hyderabad
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With deposits increasing 9% over the June quarter and Savings accounts increasing 6% year n year of the total 18% growth in Deposits, HDFC Bank did well to run in to September end with a NIM of 4.1%. Advances have grown by 25% from September 2010, for Balance sheet size increase of 20% based on retail loans growth of 30%

The Bank has proved again that efficient management can still help it scale its mature management model as Net NPAs remained a low 0.2% of its Net Advances. and Capital Adequacy also remained at 16% and 11.5% for overall and Tier I based on the current Basel norms in India. India’ s breed of banks continue to grow on equity infusions than a hankering for Tier II capital and thus the bank sizes are inherently not comparable in size to those in China and the USA.

The bank increased PAT to a humongous INR 12 bln ( INR 1199 crores ) or $240 mln for a $1 bln runrate in FY2012 total Balance Sheet assets now exceed INR 3 Tln against INR 8 Tln for SBI and INR 2.5 Tln for ICICI Bank

Advances rose to Rs 189,917 crores or $38 bln and deposits outgrew past the $40 bln watermark More details would be apparent in our series after ICICI Bank results come out at the end of the month and HDFC bank results presentation is formally created/shared for the bank

Advances rose to Rs 189,917 crores or $38 bln and deposits outgrew past the $40 bln watermark Fee income was higher by 15% over 2010, at INR 983 crs comparing well with Q1’s 1100 crores. The year on year growth in Topline is the same as for Q1 and profits are up nearly 4% from June Other Income also grew more than 8% as Deposits grew 9% from June 2011 keeping the CASA healthy at 47.1% ( CASA had reached 49% last year)

Net Interest Income rose above expectations to cross INR 3000 crores rising less than 10% QOQ from June 2011 Loan provisions were 393 crores or $78 mln a mere 12% of the NII and the Cost Income Ratio was less than 49%

India Earnings Season: YES! delivers

The penciled results of Yes Bank in the wires finally managed to escape me as I started scratching aroudn for today’s Defense summits and the $4 bln C17 procurment from the US instead of the F-35 Lightning IIs that the USAF is making for itself..but it seems the networks are otherwise busy for the moment, Mr Kapur to appear sometime in the late afternoon as usual for the results commentary.

Profits are up 40% at $54 mln and Net Interest Income at $88.5 mln The Basel I Capital Adequacy at a tired 16% showing a lot of uptake in Credit to come can be easily absorbed even with a steeper incline of RWA. No data yet on Fee income and growth in Deposits etc yet but we are on the prowl..

(MindTree is celebrating quite a pop after its accidents of the last few quarters with a $92.53 mln revenue quarter, IT services and BFSI each growin gin double digits quarter on quarter..nah! we won’t eread too much into it..in fact without YES and Opto, we would not carry any others , even PE , without a $1 bln bang in the quarter – largeky because of the no. of threads running here that have to be taken care of, The Euro for example uis a great investment at $1.42)

Bank Results Season (India Earnings Season) ICICI BANK RESULTS UPDATE

The Israeli branch of the "State Bank of ...
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ICICI BANK RESULTS UPDATE: ICICI Bank followed results from HDFC and YES at the top of the heap with growth in advances at 19% to Rs 2.24 lakh crores or or $50 billion, implying a balance sheet size of between $75 bln and $100 bln getting into place behind State Bank of India’s $350 bln balance sheet . The net Interest Margin is also healthy at 2.7% and a continued quarterly Fee based Income of $375 mln, making a  neat $1.5 bln for the full year in investment banking fees.

ICICI Bank’s Profits have come higher by 45% for the quarter year on year at $360 mln odd ( at our own flat rate of Rs 40 for the Dollar)

Q4 NII is Rs 25.2 bln and full year profits have gone up to Rs 51.5 bln and Rs 61 bln on a consolidated basis incl the impact of a lost car loan pool sold off on RBI directions Domestic credit grew by a large 35% for the year. PCR has stayed above even 75% to 76% and non perfroming loans are down to 0.94% releasing Rs 32.8 bln in profits

India Earnings Season: Another Score for YES!

Yes Bank
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 India’s crème de la crème again got a pleasant surprise per their expectations as YES Bank continued increasing its presence in retail with bigger and better CASA scores now comparable with Indusind (27% CASA) and ING Vysya Bank(with ultra retail focused franchises purchased from Vysya)

The bank scored $84 million in Net interest income, 40% higher than last Q4’s $62 million and profits have cruised to $50 million after an equally resounding growth to $35 million last year. The numbers ( NII 349 Crs and NPAT 200 Crs ) are well ahead of expectations and the bank will be key to corporates harnessing the global emerging markets and more important the big Super India – super growth storyline, still intact after recessions and slow growth demons

We’ll keep adding as details come out

It also seems ET is finally responding to competition and results from YES got a much erudite response after things have been sharply upped by us and mint (Tamal Bandhopadhya) in Banking: Here’s the ET insider

With deposit growth coming in higher as against loan growth, the credit-to-deposit ratio declined 400 bps sequentially to 75%.

However, owing to repricing of loans and hike in lending, the bank’s net interest margin ( NIM) — a measure of the difference between the costs of funds and the rate at which loans are priced — remained flat at 2.8%. Going ahead, with a low CASA ratio and the spectre of rising interest rates, there could be pressure on the bank to maintain its margins.

Currently, CASA (which is a low-cost deposit route) constitutes only 10.3% of total deposits. That may be boosted with the bank adding 65 new branches during the year.

Also as a later post suggests YES Bank detractors might like to get its borrowing rates in focus after Rabobank leaves town

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