INSUBCONTINENT EXCLUSIVE:
While the gross stress pool for the bank went up, analysts said it was in line with industry trends
on a re-rating of the stock going ahead
At 9.45 am, the scrip was trading 1.18 per cent higher at Rs 540.25 on BSE
Kotak Institutional Equities values the stock at Rs 615 from Rs 575 earlier
infrastructure was still not fully reflected in earnings
This time, the RoEs have much stronger support as the bulk of the stress is reported and well provided
The surprises, if any, are negligible on the negative side
158.32 per cent year-on-year rise in standalone profit at Rs 4,146 crore for the quarter ended December 31
to remain healthy, while high provision coverage ratio (PCR) and limited exposure to stressed names will keep credit cost under
JP Morgan has retained its overweight stance on the stock with a target of Rs 650
Slippage and BB book increase proved to be asset quality headwinds, it said
For the quarter, fund-based and non-fund based outstandings to borrowers rated BB and below (excluding NPAs) stood at Rs 17,403 crore,
compared with Rs 16,074 crore in September quarter
It was Rs 17,525 crore as of March 31
The bank, meanwhile, set aside Rs 2,083.20 crore towards provisions and contingencies, which was 51 per cent lower than Rs 4,244 crore
provided for the year-ago quarter
According to AceEquity, these were the lowest provisions the bank has made since the September quarter of 2015, when the figure stood at Rs
cent over FY21/FY22E) from sub-10 per cent, driven by better NIMs/lower opex and credit cost
5.95 per cent was the lowest since June quarter of 2016, when it had come in at 5.3 per cent
Gross NPAs stood at 6.37 per cent in September quarter and 7.75 per cent in the December quarter of 2017.