June 2024 Results Preview | Sector: Financials
Financials: Banks
Result Preview
Earnings growth to moderate; margins bias slightly negative
Asset quality outlook healthy; credit cost a key monitorable in FY25
1QFY25 earnings estimates (INR b)
1Q
YoY QoQ
PAT (INR b)
FY25E (%) (%)
Private Banks
AUBANK
4.2
9.3 14.1
AXSB
64.1 10.6 -10.1
BANDHAN
8.1 12.9 1,390
DCBB
1.4 11.4 -9.2
EQUITAS
1.7
-8.7 -16.0
FB
9.7 13.8 7.2
HDFCB
154.6 29.3 -6.4
ICICIBC
106.3 10.2 -0.7
IDFCFB
6.8 -11.0 -5.9
IIB
23.4 10.1 -0.5
KMB
35.9 4.0 -13.2
RBK
3.4 18.6 -3.1
Private Total
419.8 15.6 -3.7
PSU Banks
BOB
46.0 13.1 -5.8
CBK
39.6 12.0 5.3
INBK
22.1 29.1 -1.8
PNB
30.1 139.7 -0.1
SBIN
168.6 -0.2 -18.6
UNBK
35.8 10.6 8.1
PSU Total
342.1 11.5 -9.7
Banks Total
761.9 13.7 -6.5
SBICARD
6.4
8.7 -2.7
Paytm
-8.4
NA
NA
Credit growth to remain healthy; estimate 14% growth in systemic loans over
FY25-26:
The systemic credit growth remained healthy at 15.5% for the
fortnight ended 14
th
Jun’24. The growth was fueled by sustained momentum in
retail and business banking, while the corporate segment experienced a
moderate recovery. The home, vehicle, real estate, and small business segments
continued to do well, while CV demand remained healthy. Inflation has been
showing a downward trend, and we continue to monitor the potential turn in
the rate cycle. We estimate systemic loans to clock a 14% growth over FY25-26.
Deposit growth sustains at 12.6% YoY; margins bias slightly negative:
The FY25
credit growth has started on a good note, and while deposit accretion remains a
challenge, the gap between deposit and credit growth has narrowed to ~3.5% in
Jun’24 due to a push for deposits, and competitive TD rates offered by banks.
The CD ratio, however, has remained elevated at 79.9%, with most of the banks
reporting an increase over the past year. Among the banks under our coverage,
we will monitor deposit growth for HDFCB and AXSB. While sector margins have
compressed over the past year, select banks have further revised their rates
upwards, mainly for short-term deposits amid tight liquidity conditions. This,
coupled with a slight moderation in Weighted Average Lending Rate for the
system (mainly PSU banks), points to the continued pressure on sector margins
in the near term, albeit, at a more calibrated pace.
Asset quality outlook healthy; farm loan waivers raise concern on the
medium-term performance:
Credit quality for most banks has been robust,
leading to controlled provisioning expenses. However, the recent developments
related to farm loan waivers could potentially upset the credit culture and
would result in an uptick in credit costs, particularly in the agri and unsecured
segments (like MFI). We would thus closely monitor the asset quality outlook
over the medium term. Nevertheless, we factor in a modest rise in provisioning
expenses as: 1) the recovery from the existing NPA/TWO pools moderates, 2)
the first quarter is a seasonally weak quarter and is characterized by some rise
in agri NPAs, and 3) credit costs normalize gradually after being extremely
benign over the recent period.
Estimate earnings for our banking coverage universe to clock ~16% CAGR over
FY24-26:
We estimate NII for our banking coverage universe to grow ~12.6% YoY
in 1QFY25, while PPoP is likely to increase at a modest rate of 9.2% YoY (-5.7%
QoQ). For 1QFY25, we thus estimate Private/PSU banks to report earnings
growth of 15.6%/11.5% YoY.
We also estimate the earnings of the MOFSL
Banking Universe to grow 13.7% (~10.3% ex-HDFCB)/16.3%/16.6% YoY over
1QFY25/FY25/26.
Consequently, we estimate the
Banking sector’s earnings to
post a >16% CAGR over FY24-26.
Interestingly, we believe
that FY25 is going to
be an inflection year as earnings growth after some period of moderation
(~27% YoY growth in FY23-24) bottoms out in second half and thereafter
begins to accelerate from 2HFY25.
Nitin Aggarwal - Research Analyst
(Nitin.Aggarwal@MotilalOswal.com)
Research Analyst: Dixit Sankharva
(Dixit.sankharva@motilaloswal.com) |
Disha Singhal
(Disha.Singhal@MotilalOswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
Private banks: 1QFY25 PAT to grow ~15.0% YoY (+8.3% YoY ex-HDFCB)
For our private bank coverage universe (ex-HDFCB),
we estimate a PPoP growth
of 10% YoY/flat QoQ and a PAT growth of 8.9% YoY/decline of 2.1% QoQ in
1QFY25. We also estimate earnings to record a 16% CAGR over FY24-26.
We estimate 1QFY25 NII growth
of 16.6% YoY (+13.0% YoY ex-HDFCB), with
IDFCFB at ~25.0%, HDFCB at ~24.0%, FB at ~19.0%, Bandhan and RBK at ~17%
each, IIB at ~15%, and KMB at ~14% YoY.
Opex is likely to follow a normalized trend as the banks continue with their
investments in branches and technology, while the pace of employee hiring has
moderated. The moderation in bond yields is likely to aid other income.
Slippages broadly remain under control,
which should drive stability/further
improvement in asset quality ratios. However, we remain cautious about the
ongoing developments around farm loan waivers, which could result in some
rise in credit costs in the unsecured segments, mainly MFI.
We estimate PSBs to report moderate earnings growth of 11.5% YoY in 1QFY25.
NII growth is also likely to moderate to 8.8% YoY as margins maintain a downward
bias. Accordingly, we estimate PSBs’ earnings to clock a 17% CAGR over FY24-26.
Opex intensity will begin to ease
as wage-related provisions were largely
accounted for in 3Q and 4QFY24.
Treasury performance is likely to remain
healthy,
underpinned by a decline in bond yields and buoyant capital markets.
We also expect an improvement in CET-1 for select PSBs, backed by the revised
investment regulations.
Asset quality is anticipated to remain stable due to an improving borrower profile
and a low SMA pool, keeping slippages under control. However, with the ongoing
developments about
farm loan waivers, the outlook for asset quality
will be
closely monitored over the coming quarters. Besides, the ECL provisioning
requirement for the next fiscal may also act as an overhang on sector performance.
We estimate
AUBANK’s 1QFY25 PAT
to grow 9.3% YoY to INR4.2b (+14% QoQ),
as the bank reports its first quarter post-merger with Fincare SFB. Its NII is likely
to grow 54% YoY, as NIMs improve sharply post-merger. We, however, will keep
a close watch on its asset quality, given the adverse impact of the recent farm
loan waivers on the MFI segment, and the performance of its card business.
EQUITASB
is likely to report a modest quarter, with PAT expected to dip 8.7% YoY
amid lower other income and an elevated opex. Business growth is likely to be
soft, and we estimate advances to grow at ~15% YoY (+~2.6% QoQ), though AUM
growth will be faster. We further estimate NIMs to moderate 7bp QoQ to 8.10%.
SBICARDS:
Credit card spending is likely to recover slightly following a dip in
4QFY24, amid lower corporate spending. NIM is anticipated to be broadly
stable, while credit costs would remain elevated due to continued asset quality
pressure. We, thus, estimate earnings to grow 8.7% YoY (down 2.7% QoQ).
PAYTM:
We estimate a 7% YoY decline in GMV in 1QFY25, amounting to
INR4.3t. Revenue from its operations is projected to decrease 36% YoY to
INR14.9b, while contribution profit is estimated to decline 51% YoY to INR6.4b
for 1QFY25. The contribution margin is likely to be ~43%. Adj. operating loss is
estimated to be INR4.9b in 1QFY25.
2
PSBs: Earnings growth to moderate due to margin compression
SFBs: Mixed performance; asset quality to be keenly monitored
Payments/Fintech: Earnings growth to remain modest
July 2024
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
Top picks – ICICIBC, HDFCB, FB, and SBIN
ICICIBC: Financial snapshot (INR b)
ICICIBC (BUY)
Y/E March
FY24 FY25E FY26E
ICICIBC has consistently demonstrated a strong growth and profitability over the
NII
743 841 981
past few years. The bank boasts a healthy PCR of 81% as of 4QFY24. Moreover,
OP
581 664 790
it has set aside Covid-related provisions of INR131b (1.1% of total loans).
NP
409 460 524
NIM (%)
4.7
4.5
4.5
Slippages have been effectively managed and have been decreasing for the past
few quarters, which is expected to continue. ICICIBC is well-prepared with ample
EPS (INR)
58.4 65.6 74.7
provisions on its balance sheet and does not foresee an immediate need to
EPS Gr (%)
27.5 12.3 13.9
ABV/Sh (INR)
320 376 442
utilize these provisions.
Cons. BV/Sh (INR) 363
Ratios
RoE (%)
RoA (%)
Valuations
P/BV (x) (Cons)
P/ABV (x)
P/E (x)
18.9
2.4
3.3
3.1
20.7
433
18.0
2.3
2.8
2.6
18.4
503
17.6
2.2
2.4
2.2
16.2
Over the past year, its margin has corrected 50bp to 4.4%; however, the pace of
NIM compression has moderated sharply. Management expects margin to remain
range-bound with a slight downward bias in the near term due to elevated TD
rates (recently raised rates by 10bp), and residual repricing of its TD portfolio
.
ICICIBC is consistently outpacing system credit growth, driven by higher growth
in retail and SME segments. With a focus on building a diversified and granular
portfolio, ICICIBC reported a ~17% CAGR in loans over FY22-24.
The bank is well positioned to deliver superior performance characterized by
healthy loan growth, strong asset quality, and industry-leading return ratios. We
estimate its RoA/RoE at 2.2%/17.6% in FY26. Adjusted for its subsidiaries, the
standalone bank currently trades at 2.2x FY26E ABV.
HDFCB: Financial snapshot (INR b)
Y/E March
FY24 FY25E FY26E
NII
OP
NP
NIM (%)
EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
ABV/Sh. (INR)
1,085 1,259 1,476
944 1,052 1,247
608
3.4
80.0
1.0
580
565
14.6
1.8
21.3
18.1
2.9
702
3.5
15.4
652
636
15.0
1.8
18.5
15.7
2.6
2.3
819
3.6
16.7
739
720
15.5
HDFCB (BUY)
92.4 107.7
Ratios
RoE (%)
RoA (%)
Valuations
P/E(X)
P/E(X)*
P/BV (X)
15.8
13.5
2.3
2.0
1.9
P/ABV (X)
2.6
*Adjusted for subs.
HDFCB is confident of sustaining the steady growth momentum and has
highlighted that it has been able to maintain its incremental market share of
~16-20% despite an increase in its size.
A strong growth in the mortgage business and its focus on cross-selling other
secured/unsecured retail products will enable healthy growth, and the bank
expects to double its balance sheet in the next ~4-5 years.
Granular and a high-quality liability franchise remains a key priority for the bank,
even as it does not want to compete on rates in the market. The improving
vintage of the branch network will enable a steady rise in deposit productivity
over time. We estimate a ~18% CAGR in the bank’s deposit base over FY24-26.
Margins are expected to remain under pressure in the near term, as deposit
mobilization may take some time before the funding cost normalizes and
borrowings are replaced by low-cost deposits.
We expect margins to recover to 3.6% by FY26E and expect improvements in
cost ratios, which should enable ~15% CAGR in PPoP over FY24-26E, leading to
an RoA/RoE of ~1.9%/15.5% by FY26E. The stock currently trades at an
attractive valuation of 2.0x FY26E ABV.
July 2024
3
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
FB: Financial snapshot (INR b)
Y/E Mar
FY24 FY25E FY26E
NII
OP
NP
NIM (%)
EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
ABV/Sh. (INR)
Ratios
82.9 97.9 116.9
51.7 65.0 80.2
37.2 42.7 51.1
3.3
14.5
119
112
3.2
3.3
16.3 17.5 21.0
7.3 19.6
135
127
153
144
FB (BUY)
ROE (%)
ROA (%)
Valuations
P/E(X)
P/BV (X)
P/ABV (X)
14.7 13.8 14.6
1.3
1.3
1.3
8.4
1.2
1.2
10.8 10.1
1.5
1.6
1.3
1.4
Federal Bank remains focused on delivering sustainable loan growth by
leveraging data analytics, enhancing distribution through alternate channels and
partnerships, and adopting a digital-first approach.
The bank has been focusing on building a diversified loan book, with Retail and
SME books witnessing healthy growth of 24.4% and 22.4% YoY, respectively. FB
posted a 14% CAGR in advances over FY19-24, and the advances are likely to
clock an 18% CAGR over FY24-26.
FB clocked a 13% CAGR in deposits over FY19-24, and deposits are anticipated
to record an 18% CAGR over FY24-26. Despite stagnation in CASA ratio over the
past few quarters, growth in TD has led to an overall deposit growth.
At an overall level, there has been a sustained improvement in asset quality. The
GNPA ratio contracted to 2.1% in FY24 from 2.4% in FY23. GNPA ratios have
significantly improved in the Agri and SME sectors. Slippages have been under
control, with the bank expecting higher recoveries.
We believe that FB is well placed to deliver RoA expansion, led by controlled credit
costs and a rise in the mix of high-yielding segments. We estimate FY26 RoA/RoE of
1.3%/14.6%. The stock currently trades at a valuation of 1.2x FY26E ABV.
SBI: Financial snapshot (INR b)
Y/E March
FY24 FY25E FY26E
NII
1,599 1,737 1,983
OP
867 1,084 1,274
NP
611 706 811
NIM (%)
3.1
3.0
3.1
EPS (INR)
68.4 79.1 90.8
EPS Gr. (%)
21.6 15.5 14.9
ABV (INR)
365 431 505
Cons. BV (INR) 448 522 622
Ratios
RoE (%)
18.8 18.6 18.4
RoA (%)
1.0
1.1
1.1
Valuations
P/BV (x) (Cons.) 1.9
1.6
1.4
P/ABV (x)
1.7
1.4
1.2
P/E (x)
11.2
9.5
8.1
P/E (x)*
8.9
7.7
6.7
*Adjusted for subs.
SBI (BUY)
SBIN has delivered a strong all-round performance for the past few years and
has achieved new milestones in profitability (PAT surpassed INR600b in FY24).
SBIN delivered robust credit growth of an average ~16.4% during FY22-24. The
retail business has remained the key growth driver, as it accounted for ~36% of
the total loan book (vs. ~34% in FY21). On the wholesale front, SBIN is
witnessing a healthy pick-up in corporate loan growth, led by improved demand
and utilization, even as the bank focuses on building a high-quality portfolio.
Asset quality has remained well under control, with constant moderations in
GNPA/NNPA ratios and the overall stress pool. The bank witnessed an 18bp/7bp
YoY decline in GNPA/NNPA to 2.24%/0.57% in 4QFY24.
SBIN in FY24 witnessed high opex due to additional provisions for a 17% wage
hike settlement and one-off pension provisions, resulting in a C/I ratio of ~59%.
With the full impact of wage revision and pension already factored in, the
overall wage bill is likely to moderate significantly, leading to an anticipated
reduction in cost ratios to 51% from 59% in FY24.
Additionally, the rationalization of branches and increased usage of digital
channels, such as YONO, should boost operating efficiency, facilitating a gradual
moderation in cost ratios.
We estimate its FY26 RoA/RoE at 1.1%/18.4%. The stock currently trades at a
decent valuation of 1.2x FY26E ABV.
July 2024
4
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
Exhibit 1:
Earnings estimates – 1QFY25
Rating
Financials
AU Small Finance
Axis Bank
Bandhan Bank
DCB Bank
Equitas Small Finance
Federal Bank
HDFC Bank
ICICI Bank
IDFC First Bank
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
Neutral
Jun’24
19,244
1,33,198
29,216
5,262
8,092
22,897
2,93,436
1,95,292
46,970
55,806
71,240
16,607
8,97,260
6,03,824
1,16,177
96,596
61,467
1,03,522
4,27,193
93,840
8,98,795
17,96,054
15,02,619
14,479
14,911
NII (INR m)
YoY
(%)
54.4
11.4
17.3
11.8
8.9
19.3
24.3
7.1
25.4
14.7
14.3
16.8
16.6
13.2
5.6
11.5
7.8
8.9
9.8
6.2
8.8
12.6
10.5
17.4
-36.3
QoQ
(%)
43.9
1.8
1.9
3.7
3.0
4.3
0.9
2.3
5.1
3.8
3.1
3.8
2.8
3.7
-1.5
0.8
2.2
-0.1
2.6
-0.6
1.2
2.0
2.2
2.3
-34.2
Operating profit (INR m)
YoY
QoQ
Jun’24
(%)
(%)
8,116
97,882
17,066
2,347
3,355
14,508
2,35,043
1,53,108
17,425
41,914
52,433
8,926
6,52,124
4,17,081
77,707
79,306
44,088
69,142
2,57,924
70,684
5,98,850
12,50,974
10,15,932
18,764
-4,897
48.6
11.0
9.2
12.5
7.5
11.4
25.2
8.3
16.1
9.4
5.9
37.9
15.2
10.3
-0.7
4.3
6.6
15.9
2.0
-1.5
3.2
9.2
6.0
23.8
LP
22.2
-7.1
-7.2
0.4
-10.5
30.7
-19.7
1.8
4.7
2.7
-4.0
0.6
-8.4
-0.4
-4.1
7.4
2.4
7.8
-10.3
8.2
-2.6
-5.7
-1.7
2.4
-583.4
Net profit (INR m)
YoY
QoQ
Jun’24
(%)
(%)
4,230
64,099
8,142
1,414
1,745
9,716
1,54,587
1,06,323
6,813
23,381
35,889
3,416
4,19,757
2,65,170
46,031
39,577
22,061
30,087
1,68,584
35,797
3,42,137
7,61,894
6,07,307
6,447
-8,431
9.3
10.6
12.9
11.4
-8.7
13.8
29.3
10.2
-11.0
10.1
4.0
18.6
15.6
8.9
13.1
12.0
29.1
139.7
-0.2
10.6
11.5
13.7
10.3
8.7
NA
14.1
-10.1
1,390.6
-9.2
-16.0
7.2
-6.4
-0.7
-5.9
-0.5
-13.2
-3.1
-3.7
-2.1
-5.8
5.3
-1.8
-0.1
-18.6
8.1
-9.7
-6.5
-6.6
-2.7
NA
IndusInd Bank
Buy
Kotak Mahindra Bank
Neutral
RBL Bank
Neutral
Banks – Private
Banks – Private (Ex of HDFCB)
Bank of Baroda
Buy
Canara Bank
Buy
Indian Bank
Buy
Punjab National Bank
Neutral
State Bank of India
Buy
Union Bank
Buy
Banks – PSU
Total Banks
Total Banks (Ex of HDFCB)
SBI Cards
Neutral
Paytm
Neutral
July 2024
5
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
Exhibit 2:
Our sector earnings estimates remain broadly unchanged; estimate average growth of 16% over FY25/26
INRb
Private Banks
AXSB
BANDHAN
DCBB
HDFCB
ICICIBC
IDFCFB
IIB
KMB
FB
RBK
AUBANK
EQUITASB
Total Pvt
YoY growth
Total Pvt ( Ex of HDFCB)
YoY growth
PSU Banks
BOB
CBK
INBK
PNB
SBIN
UNBK
Total PSU
YoY growth
Total Banks
YoY growth
Total Banks ( Ex of HDFCB)
YoY growth
SBI Cards
Paytm
Old Estimates
FY25E
FY26E
277.4
36.2
6.4
702.0
454.0
37.9
106.9
146.6
44.4
15.2
21.5
9.7
1,858.3
14.5%
1,156.3
14.0%
204.0
168.8
101.9
132.3
713.4
158.6
1,479.0
19.9%
3,337.4
16.8%
2,635.4
17.2%
30.1
-11.4
322.0
43.3
7.9
818.2
528.0
51.3
131.7
168.6
53.2
20.5
29.4
12.7
2,186.9
17.7%
1,368.7
18.4%
233.0
192.5
119.2
171.9
816.5
180.5
1,713.6
15.9%
3,900.5
16.9%
3,082.3
17.0%
40.0
-1.2
Revised Estimates
FY25E
FY26E
279.9
38.5
6.4
701.6
460.4
35.6
103.2
148.4
42.7
14.9
22.0
9.2
1,862.7
14.8%
1,161.1
14.4%
197.8
167.4
97.7
133.5
705.6
157.3
1,459.2
18.3%
3,322.0
16.3%
2,620.3
16.5%
29.1
-17.3
328.9
44.0
7.8
818.6
524.4
47.6
127.8
167.1
51.1
19.5
29.4
12.5
2,178.7
17.0%
1,360.1
17.1%
228.2
192.3
116.2
167.8
810.7
180.0
1,695.1
16.2%
3,873.8
16.6%
3,055.2
16.6%
39.6
-7.2
% Change
FY25E
0.9
6.4
-0.5
-0.1
1.4
-6.1
-3.5
1.2
-3.8
-2.1
2.4
-6.1
0.2
0.4
FY26E
2.1
1.7
-1.4
0.0
-0.7
-7.2
-3.0
-0.9
-4.0
-4.8
-0.1
-1.6
-0.4
-0.6
-3.0
-0.8
-4.1
0.9
-1.1
-0.8
-1.3
-0.5
-0.6
-3.4
NA
-2.1
-0.1
-2.6
-2.4
-0.7
-0.3
-1.1
-0.7
-0.9
-1.1
Exhibit 3:
Loan growth healthy at 19.2% (including HDFC)
Loans (INR t)
Chg YoY (%)
Exhibit 4:
Deposit growth moderated to 12.6%
Deposits (INR t)
Chg YoY (%)
Exhibit 5:
Estimate NIMs to exhibit a slight downward bias
PSU
4.24
3.24
3.29
0.98
1.00
4.34
4.23
Private
4.65
3.31
3.19
4.55
3.28
4.43
3.08
4.16
3.11
4.24
4.46
3.46
4.70
3.66
4.13
4.08
3.03
July 2024
6
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
Exhibit 6:
Snapshot of the additional provision buffers as of 4QFY24
Large banks continue to
carry additional provision
buffers
As on 4QFY24
AXSB*
HDFCB
ICICIBC
IIB
AUBANK
Loans
(INR b)
9,651
24,849
11,844
3,433
732
COVID/conting Floating/additi
ent provisions onal provisions
50.1
71.2
149
124
131
-
10
-
-
0.4
Total
provisions
121
273
131
10
0.4
As a percentage
of loans (%)
1.3
1.1
1.1
0.3
0.1
*AXSB holds total provisions of INR121b, including standard and additional, other than NPA
Source: MOFSL, Company
Restructured books remain
under control for private
banks, but they are
relatively higher for PSBs
Exhibit 7:
Snapshot of restructured books across banks
INR b
AXSB
BANDHAN
DCBB
HDFCB
ICICIBC
IIB
KMB
FB
RBK
AUBANK
BOB
SBIN
INBK
PNB
UNBK
CBK
Restructured book
Absolute Mar’22 Jun’22 Sep’22 Dec’22 Mar’23 Jun’23 Sep’23 Dec’23 Mar’24
16.41
0.52
0.45
0.38
0.3
0.22
0.21
0.2
0.18
0.16
NA
5.2
2.35
0.2
NA
NA
NA
NA
NA
NA
11.59
6.42
6.1
5.45
4.94
4.51
3.97
3.4
3
2.62
51.287
1.14
0.76
0.53
0.42
0.31
NA
0.22
NA
NA
33.18
1
0.8
0.7
0.5
0.4
NA
0.32
0.29
0.26
15.699
2.6
2.1
1.5
1.25
0.84
0.66
0.54
0.48
0.40
4.59
0.44
0.39
0.34
0.25
0.22
0.19
0.15
0.13
0.10
22
2.44
2.22
2.03
1.81
1.62
1.4
1.3
1.1
0.97
5.037
3.27
2.9
2.21
1.67
1.21
1.05
0.89
0.63
0.51
4.672
2.5
2.1
1.7
1.4
1.2
1
0.8
0.7
0.60
99
2.44
2.46
2.12
1.87
1.5
1.31
NA
1
NA
188.8
1.13
1
0.93
0.85
0.8
0.69
0.62
0.54
0.47
94.36
4.73
4.2
3.9
3.37
2.51
2.19
2.12
1.93
1.67
97.2
2.36
2
1.8
1.54
1.32
NA
NA
1.06
NA
140.71
2.99
2.92
2.6
2.38
2.2
2
1.71
1.57
1.48
NA
2.77
2.41
2.09
1.75
NA
NA
NA
NA
NA
Source: MOFSL, Company
Exhibit 8:
SMA book across banks as of 4QFY24
SMA (bp of loans)
BOB
BOI
CBK
INBK
PNB
SBIN
UNBK
BANDHAN
KMB
SMA 0
NA
106bp
16bp
NA
NA
NA
12bp
60bp
NA
9bp
13bp
37bp
NA
3bp
14bp
60bp
NA
SMA 1
SMA 2
15bp
13bp
40bp
10bp
15bp
6bp
12bp
80bp
5bp
Source: MOFSL, Company
July 2024
7
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
Exhibit 9:
Personal loan growth healthy at 20.7% YoY;
personal loan mix at 32.4% in May’24 (ex-HDFC Ltd)
Agri
30%
20%
10%
0%
-10%
Industry
Services
Personal Loans
Exhibit 10:
Credit card grew ~33.2% YoY; Housing/Retail
loan growth at ~20%/20.7% YoY (ex-HDFC Ltd) in May’24
Retail YoY (%)
48%
36%
24%
12%
0%
Housing YoY (%)
Credit Card
Source: MOFSL, RBI
Source: MOFSL, RBI
Exhibit 11:
CD ratio stood at 79.9% as of Jun’24
82.0%
CD Ratio (%)
79.9%
Exhibit 12:
Three-year G-Sec yield remained in a narrow
range
9.0
7.5
6.0
4.5
3.0
Gvt 3 Yr Bond Yield (%)
6.98
78.5%
75.0%
71.5%
68.0%
Source: MOFSL, RBI
Source: MOFSL, BBG
Exhibit 13:
Five-year G-Sec yield declined 5bp in May’24
9.4
Gvt 5 Yr Bond Yield (%)
Exhibit 14:
10-year G-Sec yield stood at 6.98% in May’24
8.0
7.0
7.3
6.5
5.8
Gvt 10 Yr Bond Yield (%)
6.98
8.2
7.0
5.8
4.6
5.0
Source: MOFSL, BBG
Source: MOFSL, BBG
July 2024
8
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
Exhibit 15:
Relative performance – three months (%)
Nifty Index
110
105
100
95
Exhibit 16:
One-year relative performance (%)
Nifty Index
140
125
110
95
MOFSL Financials Index
MOFSL Financials Index
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 17:
Valuation summary
Company
Financials
Banks-Private
ICICIBC
HDFCB
AXSB
BANDHAN
KMB
IIB
FB
DCBB
IDFCFB
EQUITASB
AUBANK
RBK
Banks-PSU
SBIN
PNB
BOB
CBK
UNBK
INBK
Fintech and payments
Paytm
SBICARD
CMP
(INR)
Rating
EPS (INR)
P/E (x)
P/B (x)
RoE (%)
FY24 FY25E FY26E FY24 FY25E FY26E FY24 FY25E FY26E FY24 FY25E FY26E
1,208
1,704
1,260
206
1,804
1,455
178
140
81
97
678
263
842
122
272
119
136
541
412
725
Buy
58.4 64.6
Buy
80.0 92.4
Neutral 80.7 90.7
Neutral 13.8 23.9
Neutral 69.4 73.8
Buy
115.5 137.4
Buy
16.3 18.2
Buy
17.1 20.3
Neutral 4.3
5.4
Buy
7.1
8.6
Buy
23.0 31.2
Neutral 19.3 25.2
Buy
Neutral
Buy
Buy
Buy
Buy
Neutral
Neutral
68.4
7.5
34.4
16.0
18.9
62.2
-22.4
25.4
79.9
12.0
39.4
18.5
20.8
75.6
-17.6
31.7
75.2
107.7
106.5
27.3
84.8
169.3
21.9
24.9
7.3
11.2
39.5
33.9
91.5
15.6
45.1
21.2
23.7
88.7
-1.8
42.1
16.9
18.1
14.4
14.9
17.9
12.6
10.9
8.2
18.8
13.6
29.5
13.6
8.9
16.3
7.9
7.4
7.2
8.7
-18.4
28.5
15.2
15.7
12.8
8.6
16.8
10.6
9.8
6.9
15.1
11.2
21.8
10.5
7.6
10.2
6.9
6.4
6.5
7.2
-23.4
22.9
13.1
13.5
10.9
7.5
14.6
8.6
8.1
5.6
11.2
8.6
17.2
7.8
6.6
7.8
6.0
5.6
5.7
6.1
-229.5
17.2
2.9
2.5
2.4
1.5
2.5
1.8
1.5
0.9
1.8
1.8
3.6
1.1
1.5
1.3
1.3
1.3
1.1
1.3
2.0
5.7
2.5
2.2
2.0
1.4
2.2
1.6
1.3
0.8
1.6
1.6
2.9
1.0
1.3
1.2
1.1
1.1
1.0
1.1
2.1
4.6
2.1
2.0
1.7
1.2
1.9
1.3
1.2
0.7
1.4
1.4
2.5
0.9
1.1
1.1
1.0
1.0
0.9
1.0
2.1
3.7
18.9
14.6
18.0
1.3
15.3
15.3
14.7
11.9
10.2
14.4
13.1
8.2
18.8
8.7
17.9
20.2
16.7
17.1
-13.1
22.0
17.8
15.0
17.1
2.0
14.1
15.8
14.3
12.6
11.1
15.3
14.8
10.0
18.8
12.8
17.7
19.8
16.3
17.8
-10.8
22.4
17.7
15.5
17.1
2.0
14.1
16.8
15.1
13.7
13.3
17.4
15.7
12.7
18.5
14.9
17.6
19.6
16.3
18.3
-8.8
24.0
July 2024
9
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
The tables below provide a snapshot of actual and estimated numbers for companies under the MOFSL Coverage
Universe. Highlighted columns indicate the quarter/financial year under review.
AU Small Finance Bank
CMP: INR674 | TP: INR735 (+9%)
Expect margins to remain stable
Expect business growth to remain healthy post-merger
Quarterly Performance
1Q
12.5
27.7
3.2
15.6
10.2
5.5
38.6
0.3
-
5.1
1.3
3.9
44.4
693.2
628.6
26.9
29.2
1.8
0.6
69.0
FY24
2Q
12.5
15.3
4.3
16.7
10.3
6.5
29.9
1.1
-
5.3
1.3
4.0
17.3
757.4
641.7
29.8
24.0
1.9
0.6
69.1
3Q
13.2
14.9
4.5
17.7
11.2
6.6
18.2
1.6
-
5.0
1.2
3.8
(4.5)
801.2
667.4
31.1
20.0
2.0
0.7
66.0
4Q
13.4
10.2
5.6
18.9
12.3
6.6
16.3
1.3
0.8
4.5
0.8
3.7
(12.7)
871.8
731.6
25.7
25.2
1.7
0.6
67.6
1QE
19.2
54.4
5.8
25.1
17.0
8.1
48.6
2.5
-
5.7
1.4
4.2
9.3
1,021.2
880.0
47.3
40.0
1.7
0.5
68.2
FY25E
2QE
20.4
63.5
6.2
26.6
17.3
9.3
43.3
2.9
-
6.4
1.6
4.8
18.2
1,080.9
918.5
42.7
43.1
1.7
0.6
67.6
3QE
21.6
63.1
6.5
28.1
17.7
10.5
59.4
2.7
-
7.7
2.0
5.8
54.1
1,127.4
960.0
40.7
43.8
1.8
0.6
67.8
4QE
23.1
73.0
7.2
30.3
17.9
12.4
87.1
3.0
-
9.4
2.1
7.2
95.3
1,203.7
1,028.3
38.1
40.5
1.7
0.6
67.1
FY24
51.6
16.5
17.5
69.0
43.9
25.1
24.5
5.2
-
20.0
4.6
15.3
7.5
871.8
731.6
25.7
25.2
1.7
0.5
67.6
Buy
EPS CHANGE (%): FY25|FY26: 3.9|-1.2
CoF and C/I ratios are expected to remain elevated
Asset quality ratios will be a key monitorable
(INR b)
FY25E
84.4
63.7
25.7
110.1
69.8
40.3
60.2
11.2
-
29.1
7.1
22.0
43.4
1,203.7
1,028.3
38.1
40.5
1.7
0.6
67.1
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Exceptional item
Profit before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
Deposit (INR b)
Loan (INR b)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
GNPA (%)
NNPA (%)
PCR (%)
Axis Bank
CMP: INR1262 | TP: INR1,200 (-5%)
Expect CD ratio to remain elevated
Expect margin to moderate in 1Q
Quarterly Performance
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit before Tax
Tax
Net Profits
% Change (YoY)
Operating Parameters
Deposit (INR t)
Loan (INR t)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
1Q
119.6
27.4
50.9
170.5
82.3
88.1
49.7
10.3
77.8
19.8
58.0
40.5
9.4
8.6
17.2
22.4
2.0
0.4
79.6
FY24
2Q
3Q
123.1
125.3
18.9
9.4
50.3
55.5
173.5
180.9
87.2
89.5
86.3
91.4
11.9
-1.5
8.1
10.3
78.2
81.1
19.5
20.4
58.6
60.7
10.0
3.7
9.6
9.0
17.9
22.8
1.7
0.4
79.5
10.0
9.3
18.5
22.3
1.6
0.4
77.8
4Q
130.9
11.5
67.7
198.5
93.2
105.4
14.9
11.9
93.5
22.2
71.3
7.6
10.7
9.7
12.9
14.2
1.4
0.3
78.5
1QE
133.2
11.4
60.1
193.3
95.5
97.9
11.0
12.2
85.7
21.6
64.1
10.6
11.0
9.9
16.9
15.8
1.5
0.3
78.7
FY25E
2QE
3QE
136.8
141.0
11.1
12.5
62.7
65.9
199.6
206.8
95.9
98.9
103.7
108.0
20.2
18.1
12.8
13.4
90.9
94.6
22.9
23.8
68.0
70.7
16.0
16.5
11.4
10.2
19.2
14.0
1.5
0.3
78.5
11.9
10.6
18.6
13.6
1.5
0.3
78.7
Neutral
EPS CHANGE (%): FY25|FY26: 0.9|2.1
Cost ratios to remain elevated
Asset quality ratios to be keenly monitored
(INR b)
FY24
4QE
145.4
11.1
71.6
217.0
101.2
115.9
10.0
13.9
102.0
24.9
77.0
8.0
12.4
11.1
16.5
15.0
1.4
0.3
79.7
498.9
16.2
224.4
723.4
352.1
371.2
15.5
40.6
330.6
82.0
248.6
13.3
10.7
9.7
12.9
14.2
1.5
0.3
78.5
FY25E
556.5
11.5
260.3
816.8
391.3
425.4
14.6
52.3
373.1
93.3
279.9
12.6
12.4
11.1
16.5
15.0
1.4
0.3
79.7
July 2024
10
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
Bandhan Bank
CMP: INR206 | TP: INR210 (+2%)
Expect NIM moderation to continue
Asset quality to be a key monitorable
Quarterly Performance
Y/E March
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit Before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
Deposits (INR b)
Loans (INR b)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
1Q
24.9
-0.9
3.9
28.8
13.1
15.6
-14.2
6.0
9.6
2.4
7.2
-18.7
1,085
982
16.6
8.0
6.8
2.2
69.2
2Q
24.4
11.4
5.4
29.8
14.0
15.8
2.0
6.4
9.5
2.3
7.2
244.6
1,121
1,020
12.8
13.1
7.3
2.3
70.0
FY24
3Q
25.3
21.4
5.5
30.7
14.2
16.6
-13.9
6.8
9.7
2.4
7.3
152.2
1,174
1,102
14.8
19.6
7.0
2.2
70.0
4Q
28.7
16.0
6.9
35.6
17.2
18.4
2.4
17.7
0.6
0.1
0.5
-93.2
1,352
1,211
25.1
15.6
3.8
1.1
71.8
1QE
29.2
17.3
5.1
34.3
17.3
17.1
9.2
6.2
10.9
2.7
8.1
12.9
1,364
1,178
25.8
20.0
4.0
1.1
72.7
2QE
29.8
22.0
5.9
35.7
17.4
18.3
15.5
6.4
11.9
3.0
8.9
23.5
1,401
1,242
25.0
21.8
3.8
1.0
73.1
Neutral
EPS CHANGE (%): FY25|FY26: 6.4|1.7
Expect earnings to remain healthy
Cost ratios likely to remain elevated
FY25E
3QE
30.2
19.5
6.5
36.7
17.5
19.2
15.7
6.5
12.7
3.2
9.5
29.3
1,498
1,308
27.6
18.7
3.6
1.0
73.5
4QE
31.0
8.2
8.0
39.1
16.8
22.2
20.9
6.7
15.5
3.6
12.0
2,091.3
1,595
1,405
18.0
16.0
3.4
0.9
73.8
FY24
103.3
11.5
21.6
124.9
58.5
66.4
-6.4
37.0
29.4
7.1
22.3
1.6
1,352
1,211
25.1
15.6
3.8
1.1
71.8
(INR b)
FY25E
120.2
16.4
25.5
145.8
69.0
76.7
15.6
25.8
51.0
12.5
38.5
72.7
1,595
1,405
18.0
16.0
3.4
0.9
73.8
Bank of Baroda
CMP: INR272 | TP: INR300 (+10%)
Expect earnings growth to moderate
Expect asset quality to improve further; credit costs are
likely to remain in control
Quarterly Performance
1Q
110.0
24.4
33.2
143.2
64.9
78.2
72.8
19.5
58.8
18.1
40.7
87.7
11,999
9,635
16.2
20.5
3.5
0.8
78.5
FY24
2Q
108.3
6.4
41.7
150.0
69.8
80.2
33.0
21.6
58.6
16.1
42.5
28.4
12,496
9,980
14.6
19.3
3.3
0.8
77.6
3Q
111.0
2.6
28.1
139.1
69.0
70.2
-14.8
6.7
63.5
17.7
45.8
18.9
12,453
10,241
8.3
15.0
3.1
0.7
77.7
4Q
117.9
2.3
41.9
159.8
78.8
81.1
0.4
13.0
68.0
19.2
48.9
2.3
13,270
10,658
10.2
13.3
2.9
0.7
77.3
1QE
116.2
5.6
35.4
151.6
73.9
77.7
-0.7
16.2
61.5
15.5
46.0
13.1
13,498
10,870
12.5
12.8
2.9
0.7
77.5
FY25E
2QE
3QE
119.7
122.5
10.5
10.4
39.8
37.9
159.5
160.5
75.1
76.3
84.4
84.1
5.3
19.9
19.5
16.7
64.9
67.4
16.4
17.0
48.5
50.4
14.1
10.1
14,033
11,367
12.3
13.9
2.7
0.6
77.8
14,338
11,650
15.1
13.8
2.6
0.6
78.0
FY24
4QE
123.8
5.0
44.9
168.7
82.5
86.2
6.4
15.0
71.3
18.5
52.8
8.0
14,796
12,075
11.5
13.3
2.5
0.6
77.6
447.2
8.1
145.0
592.2
282.5
309.7
15.3
60.8
248.9
71.0
177.9
26.1
13,270
10,658
10.2
13.3
2.9
0.7
76.2
Buy
EPS CHANGE (%): FY25|FY26: -2.4|-2.3
Margins likely to moderate slightly
Loan growth and opex to be the key monitorables
(INR b)
FY25E
482.3
7.8
158.0
640.3
307.8
332.5
7.4
67.4
265.1
67.3
197.8
11.2
14,796
12,075
11.5
13.3
2.5
0.6
77.6
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
Deposit (INR b)
Loan (INR b)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
July 2024
11
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
Canara Bank
CMP: INR118 | TP: INR140 (+18%)
Expect margins to see slight compression
Asset quality anticipated to improve
Quarterly Performance
1Q
86.7
27.7
48.2
134.8
58.8
76.0
15.1
27.2
48.9
13.5
35.3
74.8
11,925
8,551
6.6
14.5
5.2
1.6
70.6
FY24
2Q
89.0
19.8
46.3
135.4
59.2
76.2
10.3
26.1
50.1
14.0
36.1
42.8
12,322
8,923
8.7
13.2
4.8
1.4
71.4
3Q
94.2
9.5
43.0
137.1
69.1
68.1
-2.1
19.0
49.1
12.5
36.6
26.9
12,629
9,206
8.5
12.8
4.4
1.3
70.8
4Q
95.8
11.2
52.2
148.0
74.1
73.9
1.9
24.8
49.1
11.5
37.6
18.3
13,124
9,316
11.3
12.2
4.2
1.3
70.9
1Q
96.6
11.5
51.2
147.8
68.5
79.3
4.3
26.2
53.1
13.5
39.6
12.0
13,348
9,506
11.9
11.2
4.1
1.2
71.4
FY25E
2Q
3Q
98.6
99.4
10.7
5.5
51.8
51.6
150.4
151.0
69.3
69.9
81.1
81.1
6.5
19.2
26.1
23.6
55.0
57.5
14.0
14.7
41.0
42.8
13.6
17.1
13,710
9,819
11.3
10.0
3.9
1.1
71.8
14,084
10,177
11.5
10.5
3.7
1.0
72.3
FY24
4Q
100.6
5.0
56.9
157.5
71.8
85.6
15.9
26.8
58.8
14.8
44.1
17.3
14,370
10,434
9.5
12.0
3.5
1.0
72.8
365.7
16.3
189.7
555.3
261.2
294.1
6.1
97.1
197.0
51.5
145.5
37.3
13,124
9,316
11.3
12.2
4.2
1.3
70.8
Buy
EPS CHANGE (%): FY25|FY26: 0.5|0
Advances and deposit growth to be the key monitorables
(INR b)
FY25E
395.1
8.1
211.5
606.6
279.5
327.1
11.2
102.7
224.4
57.0
167.4
15.0
14,370
10,434
9.5
12.0
3.5
1.0
72.8
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Other Provisions
Profit before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
Deposit (INR b)
Loan ( (INR b)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
DCB Bank
CMP: INR140 | TP: INR175 (25%)
Expect business growth to be healthy
Expect cost ratios to remain elevated
Quarterly Performance
1Q
4.7
25.9
1.1
5.8
3.7
2.1
25.6
0.4
1.7
0.4
1.3
30.7
430.1
354.7
22.6
19.0
3.3
1.2
64.1
FY24
2Q
4.8
15.7
1.1
5.8
3.7
2.1
15.3
0.4
1.7
0.4
1.3
12.9
455.0
372.8
23.1
19.1
3.4
1.3
62.8
3Q
4.7
6.3
1.2
6.0
3.9
2.1
9.0
0.4
1.7
0.4
1.3
11.2
471.2
389.5
19.3
18.2
3.4
1.2
65.1
4Q
5.1
4.4
1.4
6.4
4.1
2.3
(4.2)
0.2
2.1
0.5
1.6
9.5
493.5
409.2
19.7
19.0
3.2
1.1
66.4
1QE
5.3
11.8
1.3
6.5
4.2
2.3
12.5
0.4
1.9
0.5
1.4
11.4
512.9
424.6
19.2
19.7
3.2
1.1
66.3
FY25E
2QE
5.5
15.5
1.4
6.9
4.3
2.5
20.8
0.5
2.0
0.5
1.5
17.8
541.9
447.7
19.1
20.1
3.0
1.0
67.0
FY24
3QE
5.8
21.7
1.4
7.2
4.5
2.8
30.2
0.6
2.2
0.6
1.6
28.0
566.1
466.9
20.1
19.9
2.9
1.0
67.7
4QE
6.2
21.9
1.5
7.7
4.6
3.1
33.9
0.7
2.5
0.6
1.8
17.4
590.3
486.2
19.6
18.8
2.7
0.9
67.9
19.3
12.3
4.7
24.0
15.4
8.6
9.9
1.4
7.2
1.9
5.4
15.1
493.5
409.2
19.7
19.0
3.2
1.1
66.4
Buy
EPS CHANGE (%): FY25|FY26: -0.5|-1.4
Asset quality likely to remain broadly stable
Margin trajectory to be closely monitored
(INR b)
FY25E
22.7
17.8
5.6
28.3
17.5
10.8
24.6
2.2
8.6
2.2
6.4
18.6
590.3
486.2
19.6
18.8
2.7
0.9
67.9
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
Deposit (INR b)
Loan (INR b)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
July 2024
12
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
Equitas Small Finance Bank
CMP: INR96 | TP: INR125 (+30%)
Expect NIMs to moderate further
Asset quality to be keenly monitored
Quarterly Performance
Y/E March
Interest Income
Interest Expense
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
AUM
Deposits
Loans
AUM Growth (%)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
1Q
12.5
5.1
7.4
28.0
1.7
9.1
6.0
3.1
16.4
0.6
2.5
0.6
1.9
97.1
296
277
275
36
36
34
2.8
1.2
57.8
FY24
2Q
13.6
5.9
7.7
25.6
1.8
9.5
6.2
3.3
36.3
0.6
2.7
0.7
2.0
70.2
312
308
288
37
42
32
2.3
1.0
57.7
Buy
EPS CHANGE (%): FY25|FY26: -6.1|-1.6
Cost ratios likely to remain elevated
Deposit traction and trend in CASA ratio to be the key monitorables
(INR b)
3Q
14.3
6.4
7.9
21.3
2.1
9.9
6.3
3.6
29.1
0.8
2.8
0.7
2.0
18.7
328
324
292
32
38
25
2.5
1.1
56.0
4Q
14.4
6.6
7.9
11.2
2.4
10.3
6.5
3.7
-3.0
1.1
2.7
0.6
2.1
9.3
337
361
310
21
42
20
2.6
1.2
56.1
1QE
15.3
7.2
8.1
8.9
2.2
10.3
6.9
3.4
7.5
1.0
2.3
0.6
1.7
-8.7
346
376
318
17
36
15
2.7
1.2
57.4
FY25E
2QE
16.1
7.6
8.5
11.3
2.3
10.9
7.2
3.7
11.4
1.0
2.7
0.7
2.0
1.9
369
397
339
18
29
18
2.7
1.1
58.6
3QE
17.6
8.3
9.3
18.6
2.5
11.8
7.4
4.4
22.3
1.1
3.3
0.8
2.5
21.9
394
425
362
20
31
24
2.7
1.1
59.7
4QE
18.7
8.5
10.2
29.8
2.7
12.9
7.7
5.2
39.6
1.3
3.9
1.0
2.9
40.9
416
452
382
24
25
24
2.7
1.1
60.6
FY24
54.9
24.1
30.8
21.0
8.0
38.8
25.0
13.8
17.1
3.1
10.6
2.6
8.0
39.3
337
361
310
21
42
20
2.6
1.2
56.1
FY25E
67.7
31.6
36.1
17.3
9.7
45.9
29.2
16.7
21.1
4.4
12.2
3.1
9.2
14.5
416
452
382
24
25
24
2.7
1.1
60.6
Federal Bank
CMP: INR178 | TP: INR210 (+18%)
Credit growth to remain healthy
Expect cost ratios to remain under control
Quarterly Performance
1Q
19.2
19.6
7.3
26.5
13.5
13.0
33.8
1.6
11.5
2.9
8.5
42.1
2,225
1,835
21.3
21.0
2.4
0.7
71.3
FY24
2Q
20.6
16.7
7.3
27.9
14.6
13.2
9.3
0.4
12.8
3.3
9.5
35.5
2,329
1,928
23.1
19.6
2.3
0.6
72.3
3Q
21.2
8.5
8.6
29.9
15.5
14.4
12.8
0.9
13.5
3.4
10.1
25.3
2,396
1,992
19.0
18.4
2.3
0.6
72.3
Buy
EPS CHANGE (%): FY25|FY26: -3.8|-4.0
Margins to remain broadly stable
Asset quality metrics to remain broadly stable too
(INR b)
4Q
22.0
15.0
7.5
29.5
18.4
11.1
-16.8
-0.9
12.0
3.0
9.1
0.4
2,525
2,094
18.3
20.0
2.1
0.6
72.3
1QE
22.9
19.3
8.2
31.1
16.6
14.5
11.4
1.5
13.0
3.3
9.7
13.8
2,612
2,165
17.4
18.0
2.1
0.6
72.0
FY25E
2QE
23.9
16.1
8.7
32.6
17.0
15.6
17.6
1.9
13.7
3.5
10.3
7.6
2,725
2,258
17.0
17.1
2.1
0.6
72.2
FY24
3QE
24.9
17.1
9.2
34.1
17.3
16.8
16.7
1.9
14.8
3.7
11.1
10.3
2,857
2,366
19.3
18.8
2.0
0.6
72.5
4QE
26.2
19.5
9.6
35.8
17.7
18.1
63.0
2.3
15.8
4.2
11.7
28.6
2,980
2,467
18.0
17.8
2.0
0.5
72.6
82.9
14.7
30.8
113.7
62.0
51.7
7.9
2.0
49.8
12.6
37.2
23.6
2,525
2,094
18.3
20.0
2.1
0.6
72.3
FY25E
97.9
18.0
35.7
133.6
68.6
65.0
25.5
7.6
57.4
14.6
42.7
14.9
2,980
2,467
18.0
17.8
2.0
0.5
72.6
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
Deposit (INR b)
Loan (INR b)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
July 2024
13
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
HDFC Bank
CMP: INR1,705 | TP: INR1,950 (+14%)
Operating expenses to remain under control
Asset quality is likely to remain broadly stable
Quarterly Performance
1Q
236.0
21.1
92.3
328.3
140.6
187.7
22.2
28.6
159.1
39.6
119.5
30.0
19,131
16,157
19.2
15.8
1.2
0.3
74.9
FY24
2Q
273.9
30.3
107.1
380.9
154.0
226.9
30.5
29.0
197.9
38.1
159.8
50.6
21,729
23,312
29.8
57.5
1.3
0.4
74.4
3Q
284.7
23.9
111.4
396.1
159.6
236.5
24.3
42.2
194.3
30.6
163.7
33.5
22,140
24,461
27.7
62.3
1.3
0.3
75.3
4Q
290.8
24.5
181.7
472.4
179.7
292.7
57.2
135.1
157.6
-7.5
165.1
37.1
23,798
24,849
26.4
55.2
1.2
0.3
74.0
1QE
293.4
24.3
111.6
405.0
170.0
235.0
25.2
28.9
206.1
51.5
154.6
29.3
24,398
25,287
27.5
56.5
1.2
0.3
73.8
FY25E
2QE
306.0
11.7
121.7
427.8
175.0
252.8
11.4
29.8
223.0
55.7
167.2
4.7
25,169
25,944
15.8
11.3
1.2
0.3
74.0
FY24
3QE
322.4
13.2
130.3
452.7
181.4
271.3
14.7
30.8
240.6
59.2
181.4
10.8
26,240
26,821
18.5
9.6
1.2
0.3
73.5
4QE
337.5
16.1
143.5
481.0
187.8
293.2
0.2
33.6
259.6
61.2
198.4
20.2
28,081
27,980
18.0
12.6
1.1
0.3
73.2
1,085.3
25.0
492.4
1,577.7
633.9
943.9
34.1
234.9
709.0
100.8
608.1
37.9
23,798
24,849
26.4
55.2
1.2
0.3
74.0
Buy
EPS CHANGE (%): FY25|FY26: -0.1|0
Margins to remain broadly stable
Guidance for business growth and earnings trajectory to be
the key monitorables
(INR b)
FY25E
1,259.4
16.0
507.2
1,766.6
714.2
1,052.4
11.5
123.1
929.3
227.7
701.6
15.4
28,081
27,980
18.0
12.6
1.1
0.3
73.2
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
Deposit
Loan
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
ICICI Bank
CMP: INR1212 | TP: INR1,350 (+11%)
Expect loan growth to remain healthy, led by Retail
and SME segments
Margins expected to moderate slightly
Quarterly performance
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
Deposit
Loan
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
1Q
182.3
38.0
54.4
236.6
95.2
141.4
37.2
12.9
128.5
32.0
96.5
39.7
12,387
10,576
17.9
18.1
2.8
0.5
83.1
FY24
2Q
183.1
23.8
57.8
240.8
98.6
142.3
21.8
5.8
136.5
33.9
102.6
35.8
12,947
11,105
18.8
18.3
2.5
0.4
83.1
3Q
186.8
13.4
61.0
247.8
100.5
147.2
10.9
10.5
136.7
34.0
102.7
23.6
13,323
11,538
18.7
18.5
2.3
0.4
81.3
4Q
190.9
8.1
56.5
247.4
97.0
150.4
8.8
7.2
143.2
36.1
107.1
17.4
14,128
11,844
19.6
16.2
2.2
0.4
80.8
1QE
195.3
7.1
61.1
256.4
103.3
153.1
8.3
11.9
141.2
34.9
106.3
10.2
14,594
12,259
17.8
15.9
2.3
0.4
80.5
FY25
2QE
205.3
12.1
64.8
270.1
108.6
161.5
13.5
11.4
150.1
37.1
113.0
10.1
15,340
12,880
18.5
16.0
2.2
0.4
80.3
FY24
3QE
217.1
16.2
68.0
285.1
113.5
171.6
16.6
14.2
157.4
38.9
118.5
15.4
15,877
13,440
19.2
16.5
2.1
0.4
80.5
4QE
223.7
17.2
71.7
295.5
117.9
177.6
18.1
14.0
163.6
41.0
122.6
14.5
16,459
13,917
16.5
17.5
2.1
0.4
79.5
743.1
19.6
229.6
972.6
391.3
581.3
18.4
36.4
544.9
136.0
408.9
28.2
14,128
11,844
19.6
16.2
2.3
0.5
80.8
Buy
EPS CHANGE (%): FY25|FY26: 1.4|-0.7
Expect cost ratios to remain elevated
Asset quality to be the key monitorable
(INR b)
FY25E
841.4
13.2
265.6
1,107.1
443.2
663.8
14.2
51.6
612.3
151.8
460.4
12.6
16,459
13,917
16.5
17.5
2.1
0.4
79.5
July 2024
14
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
IDFC First Bank
CMP: INR81 | TP: INR88 (8%)
Expect business growth to remain healthy
Cost ratios likely to remain elevated
Quarterly Performance
1Q
37.5
36.1
14.1
51.6
36.6
15.0
59.0
4.8
10.2
2.6
7.7
61.3
1,544
36.2
1,674
26.3
2.2
0.7
68.1
FY24E
2Q
39.5
31.6
14.3
53.8
38.7
15.1
29.2
5.3
9.8
2.3
7.5
35.2
1,712
38.7
1,781
27.0
2.1
0.7
68.2
3Q
42.9
30.5
15.2
58.0
42.4
15.6
23.9
6.5
9.1
1.9
7.2
18.4
1,825
37.2
1,855
27.3
2.0
0.7
66.9
4Q
44.7
24.2
16.4
61.1
44.5
16.6
6.8
7.2
9.4
2.2
7.2
-9.8
2,006
38.7
1,946
24.4
1.9
0.6
68.8
Neutral
EPS CHANGE (%): FY25|FY26: -3.9|-4.5
Asset quality to remain broadly stable
Traction in deposit growth and margins to be in focus
(INR b)
1QE
47.0
25.4
16.9
63.9
46.5
17.4
16.1
8.3
9.1
2.3
6.8
-11.0
2,120
37.3
2,034
21.5
1.9
0.6
68.2
FY25E
2QE
49.6
25.6
17.7
67.3
47.6
19.7
30.6
9.3
10.4
2.6
7.8
3.4
2,307
34.7
2,152
20.8
1.9
0.6
68.0
FY24
3QE
52.3
22.0
18.6
70.9
49.0
21.9
40.2
9.3
12.6
3.2
9.4
31.7
2,469
35.3
2,275
22.7
1.9
0.6
68.4
4QE
55.3
23.8
20.0
75.3
50.5
24.8
49.1
9.5
15.3
3.7
11.6
59.7
2,607
30.0
2,437
25.3
1.8
0.5
72.7
164.5
30.2
60.0
224.5
162.2
62.4
26.5
23.8
38.6
9.0
29.6
21.3
2,006
38.7
1,946
28.2
1.9
0.6
68.8
FY25E
204.2
24.1
73.2
277.4
193.6
83.9
34.5
36.4
47.5
11.9
35.6
20.3
2,607
30.0
2,393
23.0
1.9
0.5
72.7
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
Deposit (INR b)
Deposit Growth (%)
Loan (INR b)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
IndusInd Bank
CMP: INR1,457 | TP: INR1,800 (+24%).
Expect business growth to remain healthy
Expect margins to remain broadly stable
Quarterly Performance
1Q
48.7
18.0
22.1
70.8
32.5
38.3
11.7
9.9
28.4
7.2
21.2
30.3
3,470
3,013
14.5
21.5
1.9
0.6
70.6
FY24
2Q
50.8
18.0
22.8
73.6
34.5
39.1
10.3
9.7
29.3
7.3
22.0
22.0
3,595
3,155
13.9
21.3
1.9
0.6
70.6
3Q
53.0
17.8
24.0
76.9
36.5
40.4
9.7
9.7
30.7
7.7
23.0
17.2
3,688
3,271
13.4
19.9
1.9
0.6
70.6
4Q
53.8
15.1
25.1
78.8
38.0
40.8
8.6
9.5
31.3
7.8
23.5
15.0
3,846
3,433
14.4
18.4
1.9
0.6
70.6
1QE
55.8
14.7
25.6
81.4
39.5
41.9
9.4
10.7
31.3
7.9
23.4
10.1
3,979
3,550
14.7
17.8
1.9
0.6
70.2
FY25E
2QE
58.1
14.4
26.3
84.3
40.7
43.7
11.7
11.1
32.5
8.2
24.3
10.5
4,125
3,690
14.7
17.0
1.9
0.6
70.5
FY24
3QE
60.9
14.9
27.3
88.2
41.5
46.7
15.6
11.3
35.4
8.9
26.5
15.1
4,309
3,859
16.8
18.0
1.9
0.5
71.2
4QE
64.2
19.4
28.8
93.0
43.0
50.1
22.7
11.5
38.6
9.6
29.0
23.6
4,480
4,017
16.5
17.0
1.9
0.5
75.8
206.2
17.2
94.0
300.1
141.5
158.6
10.0
38.8
119.8
30.0
89.8
20.6
3,846
3,433
14.4
18.4
1.9
0.6
70.6
Buy
EPS CHANGE (%): FY25|FY26: -2.7|-3.0
Expect asset quality to remain broadly stable
Credit costs to remain under control
(INR b)
FY25E
238.9
15.9
108.1
347.0
164.6
182.4
15.0
44.6
137.8
34.6
103.2
15.0
4,480
4,017
16.5
17.0
1.9
0.5
75.8
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
Deposit (INR b)
Loan (INR b)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
July 2024
15
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
Indian Bank
CMP: INR545 | TP: INR625 (+15%)
Expect cost ratios to moderate
Margin to moderate slightly
Quarterly Performance
Y/E March
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
Deposits (INR b)
Loans (INR b)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
1Q
57.0
25.8
17.1
74.1
32.8
41.3
16.0
17.4
23.9
6.9
17.1
40.8
6,312
4,591
8.0
14.3
5.5
0.7
87.8
FY24
2Q
57.4
22.5
19.9
77.3
34.3
43.0
18.6
15.5
27.5
7.6
19.9
62.2
6,408
4,706
8.8
14.2
5.0
0.6
88.5
Buy
EPS CHANGE (%): FY25|FY26: -4.3|-2.7
Earnings growth to remain on track
Expect asset quality ratios to improve
FY25E
2Q
63.8
11.2
21.3
85.1
37.6
47.5
10.3
15.0
32.5
8.2
24.3
22.4
7,183
5,400
12.1
14.7
3.6
0.4
89.6
FY24
3Q
66.2
13.8
22.1
88.2
38.9
49.3
20.3
15.3
34.0
8.6
25.4
20.0
7,372
5,557
12.7
13.5
3.5
0.4
89.8
4Q
67.3
11.9
23.8
91.1
42.0
49.1
14.0
14.5
34.6
8.7
25.9
15.1
7,637
5,777
11.0
12.2
3.1
0.3
89.3
232.7
15.1
78.7
311.4
143.0
168.4
10.3
58.9
109.5
28.9
80.6
52.7
6,880
5,149
10.8
14.6
4.0
0.4
89.5
(INR b)
FY25E
258.8
11.2
86.5
345.3
155.4
189.9
12.8
59.3
130.6
32.9
97.7
21.1
7,637
5,777
11.0
12.2
3.1
0.3
89.3
3Q
58.1
5.7
19.0
77.2
36.2
41.0
0.9
13.5
27.5
6.3
21.2
51.8
6,542
4,896
9.6
12.3
4.5
0.5
88.7
4Q
60.2
9.2
22.6
82.8
39.7
43.0
7.2
12.5
30.6
8.1
22.5
55.3
6,880
5,149
10.8
14.6
4.0
0.4
89.5
1Q
61.5
7.8
19.4
80.9
36.8
44.1
6.6
14.6
29.5
7.4
22.1
29.1
7,009
5,256
11.0
14.5
3.8
0.4
89.5
Kotak Mahindra Bank
CMP: INR1,809 | TP: INR1,800 (0%)
Expect cost ratios to remain elevated
Margins to compress further
Quarterly Performance
Y/E March
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit before Tax
Tax
Net Profit
% Change (YoY)
Deposits (INRb)
Loans (INRb)
Deposit growth (%)
Loan growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
1Q
62.3
32.7
26.8
89.2
39.7
49.5
77.8
3.6
45.9
11.3
34.5
66.7
3,863
3,286
22.0
17.3
1.77
0.40
78.0
FY24
2Q
63.0
23.5
23.1
86.1
40.0
46.1
29.2
3.7
42.4
10.5
31.9
23.6
4,010
3,483
23.3
18.5
1.72
0.37
79.1
Neutral
EPS CHANGE (%): FY25|FY26: 0.9|-0.7
Asset quality to remain in control
Business growth will be a key monitorable
FY25E
2QE
3QE
73.3
75.7
16.4
15.5
29.7
30.5
103.0
106.2
48.7
50.7
54.4
55.6
17.9
21.7
5.0
5.1
49.4
50.5
12.1
12.4
37.2
38.0
16.7
26.6
4,817
5,042
4,038
4,218
20.1
23.4
15.9
17.3
1.34
0.34
75.1
1.31
0.33
75.0
FY24
4QE
76.6
10.8
31.7
108.3
53.9
54.5
-0.3
5.1
49.4
12.2
37.2
-9.9
5,217
4,362
16.2
16.0
0.00
0.00
74.7
259.9
20.6
102.7
362.7
166.8
195.9
31.9
15.7
180.1
42.3
137.8
26.0
4,490
3,761
23.6
17.6
1.39
0.34
75.9
(INR b)
FY25E
296.8
14.2
120.2
417.0
200.2
216.8
10.7
20.0
196.8
48.4
148.4
7.7
5,217
4,362
16.2
16.0
1.29
0.33
74.7
3Q
65.5
15.9
23.0
88.5
42.8
45.7
18.6
5.8
39.9
9.8
30.1
7.6
4,086
3,596
18.6
15.7
1.73
0.34
80.6
4Q
69.1
13.2
29.8
98.9
44.3
54.6
17.5
2.6
52.0
10.6
41.3
18.2
4,490
3,761
23.6
17.6
1.39
0.34
75.9
1QE
71.2
14.3
28.2
99.5
47.1
52.4
5.9
4.8
47.6
11.7
35.9
4.0
4,606
3,881
19.2
18.1
1.37
0.34
75.4
July 2024
16
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
Punjab National Bank
CMP: INR122 | TP: INR130 (+6%)
Expect margins to compress further
Neutral
EPS CHANGE (%): FY25|FY26: -1.2|-3.3
Opex to remain under control as wage provisions already
made
Business growth/RoA trajectory to remain the key
monitorables
(INR b)
FY24
2Q
99.2
20.0
30.3
129.5
67.3
62.2
11.7
34.4
27.7
10.2
17.6
327.0
13,099
8,899
9.8
15.1
7.0
1.5
80.0
3Q
102.9
12.1
26.7
129.7
66.4
63.3
10.8
27.4
35.9
13.7
22.2
253.5
13,235
9,164
9.3
14.5
6.2
1.0
85.4
4Q
103.6
9.1
42.5
146.1
82.0
64.2
9.4
15.9
48.3
18.2
30.1
159.8
13,697
9,344
6.9
12.5
5.7
0.7
87.9
1Q
103.5
8.9
36.0
139.5
70.4
69.1
15.9
22.9
46.3
16.2
30.1
139.7
13,919
9,546
7.2
10.5
5.4
0.7
88.1
FY25E
2Q
3Q
106.4
109.0
7.2
5.9
33.6
37.5
140.0
146.5
72.6
73.2
67.4
73.2
8.4
15.7
20.4
23.3
47.0
49.9
16.4
17.5
30.5
32.4
73.9
45.9
14,221
9,849
8.6
10.7
4.9
0.6
88.5
14,594
10,208
10.3
11.4
4.5
0.6
88.3
FY24
4Q
108.5
4.7
42.9
151.3
77.8
73.5
14.5
28.7
44.8
4.4
40.4
34.3
14,861
10,466
8.5
12.0
4.2
0.5
87.5
400.8
16.2
133.8
534.7
285.4
249.3
10.7
117.4
131.9
49.5
82.4
228.8
13,697
9,344
6.9
12.5
5.7
0.7
87.9
FY25E
427.4
6.6
149.9
577.3
294.0
283.2
13.6
95.2
188.0
54.5
133.5
61.9
14,861
10,466
8.5
12.0
4.2
0.5
87.5
Expect asset quality to improve
Quarterly Performance
Y/E March
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
Deposits
Loans
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
1Q
95.0
26.0
34.3
129.4
69.7
59.7
10.9
39.7
20.0
7.5
12.6
307.0
12,979
8,637
14.2
16.3
7.7
2.0
75.8
RBL Bank
CMP: INR264 | TP: INR280 (6%)
Expect earnings to moderate, driven by higher provisions
Loan growth is likely to remain healthy
Neutral
EPS CHANGE (%): FY25|FY26: -2.1 |-4.8
Expect asset quality ratios to remain broadly stable
Margin and credit cost outlook to be the key monitorables
FY25E
2QE
17.3
17.4
9.0
26.3
16.7
9.7
32.2
4.8
4.8
1.2
3.6
23.1
1,115.0
921.3
24.2
20.7
2.6
0.7
73.4
FY24
3QE
18.2
17.6
9.3
27.5
17.5
9.9
30.0
4.9
5.0
1.3
3.8
61.3
1,155.1
962.1
24.5
20.3
2.7
0.7
73.5
4QE
19.2
19.8
9.9
29.0
18.4
10.6
19.9
5.3
5.4
1.3
4.1
16.7
1,212.9
1,002.8
17.2
19.4
2.7
0.6
76.4
60.4
20.9
30.4
90.9
60.6
30.3
37.6
17.8
12.5
0.8
11.7
32.3
1,034.9
839.9
21.9
19.6
2.7
0.7
72.7
FY25E
71.3
17.9
36.8
108.1
68.9
39.2
29.3
19.4
19.8
4.9
14.9
27.7
1,212.9
1,002.8
17.2
19.4
2.7
0.6
76.4
Quarterly Performance
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
Deposit
Loan
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
1Q
14.2
19.6
6.9
21.1
14.6
6.5
22.4
2.7
3.8
0.9
2.9
43.2
856.4
730.9
8.1
21.3
3.2
1.0
69.6
FY24
2Q
14.7
25.6
7.0
21.8
14.5
7.3
42.7
6.4
0.9
-2.0
2.9
45.9
897.8
763.2
13.1
21.3
3.1
0.8
75.6
3Q
15.5
21.1
7.8
23.2
15.6
7.7
34.9
4.6
3.1
0.7
2.3
11.5
927.5
799.5
13.5
19.9
3.1
0.8
75.1
4Q
16.0
17.9
8.8
24.8
15.9
8.9
49.4
4.1
4.7
1.2
3.5
30.1
1,034.9
839.9
21.9
19.6
2.7
0.7
72.7
1QE
16.6
16.8
8.7
25.3
16.3
8.9
37.9
4.4
4.6
1.2
3.4
18.6
1,075.0
876.5
25.5
19.9
2.7
0.7
73.2
July 2024
17
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
State Bank of India
CMP: INR842 | TP: INR1015 (+21%)
Earnings to moderate led by higher provisions
Expect cost ratios to remain under control
Quarterly Performance
Y/E March
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Exceptional items (exp)
Profit before Tax
Tax Provisions
Net Profit
% Change (YoY)
Adj. Net profit
Operating Parameters
Deposits (INR t)
Loans (INR t)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
1Q
389.0
24.7
120.6
509.7
256.7
253.0
98.4
25.0
0.0
228.0
59.1
168.8
178.2
168.8
45.3
32.4
12.0
14.9
2.8
0.7
74.8
FY24
2Q
395.0
12.3
107.9
502.9
308.7
194.2
-8.1
1.2
0.0
193.0
49.7
143.3
8.0
143.3
46.9
33.5
11.9
13.3
2.6
0.6
75.4
3Q
398.2
4.6
114.6
512.7
309.4
203.4
-19.4
6.9
71.0
125.5
33.8
91.6
-35.5
144.0
47.6
35.2
13.0
15.1
2.4
0.6
74.2
Buy
EPS CHANGE (%): FY25|FY26: -1.1|-0.7
Asset quality expected to improve further
Margin to witness a slight compression
(INR b)
4Q
416.6
3.1
173.7
590.2
302.8
287.5
16.8
16.1
0.0
271.4
64.4
207.0
24.0
207.0
49.2
37.0
11.1
15.8
2.2
0.6
75.0
1QE
427.2
9.8
114.0
541.2
283.2
257.9
2.0
30.7
0.0
227.2
58.6
168.6
-0.2
168.6
50.1
37.9
10.5
17.2
2.2
0.5
75.4
FY25E
2QE
435.9
10.3
122.6
558.5
288.0
270.5
39.3
36.6
0.0
233.9
60.4
173.6
21.1
173.6
51.2
39.0
9.1
16.7
2.1
0.5
75.7
FY24
3QE
439.3
10.3
127.5
566.9
297.6
269.3
32.4
35.2
0.0
234.1
60.4
173.7
89.6
144.0
52.7
40.5
10.6
15.2
2.1
0.5
76.0
4QE
434.1
4.2
178.5
612.7
326.3
286.4
-0.4
37.1
0.0
249.3
59.6
189.7
-8.4
189.7
54.4
42.3
10.7
14.1
2.0
0.5
75.9
1,598.8
10.4
516.8
2,115.6
1,248.6
867.0
3.6
49.1
71.0
746.8
207.1
539.8
7.5
610.8
49.2
37.0
11.1
15.8
2.2
0.6
74.8
FY25E
1,736.6
8.6
542.7
2,279.2
1,195.1
1,084.2
25.1
139.6
0.0
944.5
239.0
705.6
30.7
54.4
42.3
10.7
14.1
2.0
0.5
75.9
Union Bank of India
CMP: INR135 | TP: INR165 (+22%)
Expect healthy earnings, driven by lower opex and higher
other income
SMA and restructuring books are the key monitorables
Quarterly Performance
1Q
88.4
16.6
39.0
127.4
55.6
71.8
31.8
20.1
51.7
19.4
32.4
107.7
11,281
7,705
13.6
13.9
7.3
1.6
79.8
FY24
2Q
3Q
91.3
91.7
9.9
6.3
37.0
37.7
128.2
129.4
56.0
56.6
72.2
72.8
9.8
9.9
17.7
17.5
54.5
55.3
19.4
19.4
35.1
35.9
90.0
59.9
11,376
8,036
9.0
10.5
6.4
1.3
80.7
11,725
8,621
10.1
14.0
4.8
1.1
78.4
4Q
94.4
14.4
47.1
141.4
76.1
65.3
-4.3
12.6
52.7
19.6
33.1
19.0
12,215
8,708
9.3
14.3
4.8
1.0
79.1
1Q
93.8
6.2
39.6
133.4
62.7
70.7
-1.5
19.5
51.1
15.3
35.8
10.6
12,404
8,885
10.0
15.3
4.5
1.0
79.3
FY25E
2Q
3Q
95.8
98.9
5.0
7.9
39.9
42.2
135.7
141.1
63.8
64.8
71.9
76.2
-0.4
4.7
18.9
18.1
53.0
58.2
15.9
17.4
37.1
40.7
5.7
13.4
12,715
9,178
11.8
14.2
3.8
0.8
79.6
12,993
9,439
10.8
9.5
3.5
0.7
80.1
4Q
99.4
5.4
50.4
149.9
71.1
78.7
20.5
25.6
53.1
9.5
43.6
31.8
13,327
9,753
9.1
12.0
3.7
0.8
79.5
Buy
EPS CHANGE (%): FY25|FY26: -0.8|-0.3
Margins anticipated to compress slightly
Expect steady improvement in asset quality
(INR b)
FY24
365.7
11.6
160.8
526.5
244.4
282.1
10.8
67.8
214.3
77.8
136.5
61.8
12,215
8,708
9.3
14.3
4.8
1.1
78.4
FY25E
388.0
6.1
172.1
560.0
262.5
297.6
5.5
82.1
215.4
58.2
157.3
15.2
13,327
9,753
9.1
12.0
3.7
0.8
79.5
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
Deposit (INR b)
Loan (INR b)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
July 2024
18
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
SBI Cards and Payment Services
CMP: INR723 | TP: INR850 (+18%)
Cost ratios expected to remain elevated
Spending growth to remain in control after a dip in 4Q
Quarterly Performance
1Q
12.3
14.3
22.4
34.8
19.6
15.2
17.3
7.2
8.0
2.0
5.9
-5.4
FY24
2Q
13.0
16.1
23.2
36.2
20.7
15.5
23.9
7.4
8.1
2.1
6.0
14.7
3Q
13.9
21.2
26.6
40.5
24.3
16.2
33.1
8.8
7.4
1.9
5.5
7.8
4Q
14.1
21.4
23.4
37.5
19.2
18.3
28.2
9.4
8.9
2.3
6.6
11.0
1QE
14.5
17.4
26.2
40.7
21.9
18.8
23.8
10.1
8.7
2.2
6.4
8.7
FY25E
2QE
15.1
16.2
27.0
42.0
22.7
19.4
24.9
10.2
9.1
2.3
6.8
12.9
538.3
23.6
437.1
28.3
2.9
1.0
65.3
Neutral
EPS CHANGE (%): FY25|FY26: -3.4|-1.1
Asset quality ratios likely to deteriorate further
Revolver mix/margin outlook remain the key monitorables
FY24
3QE
16.4
18.1
28.8
45.1
25.8
19.3
19.3
9.4
10.0
2.5
7.4
35.4
570.7
21.0
463.2
21.9
2.8
1.0
65.6
4QE
17.6
24.1
30.1
47.7
25.8
21.9
19.5
10.6
11.3
2.9
8.4
27.0
598.8
22.0
485.8
21.8
2.8
0.9
69.1
53.3
21.1
95.6
148.9
83.7
65.2
25.6
32.9
32.3
8.2
24.1
6.7
490.8
24.7
398.9
28.2
2.8
1.0
64.8
(INR b)
FY25E
63.5
19.1
112.1
175.6
96.2
79.4
21.7
40.3
39.1
10.0
29.1
20.8
598.8
22.0
485.8
21.8
2.7
0.9
69.1
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
Loan (INRb)
418.1
435.6
471.6
490.8
512.4
Loan Growth (%)
30.3
19.3
26.3
24.7
22.5
Borrowings (INRb)
329.6
340.8
380.1
398.9
416.3
Borrowing Growth (%)
32.9
20.9
29.3
28.2
26.3
Asset Quality
Gross NPA (%)
2.4
2.4
2.6
2.8
2.9
Net NPA (%)
0.9
0.9
1.0
1.0
1.0
PCR (%)
63.8
64.1
64.1
64.9
65.0
E: MOFSL Estimates; * Reported on total assets; # Cal. on interest earning assets
Paytm
CMP: INR418 | TP: INR400 (-4%)
Expect operating profitability to decline
Expect disbursements and GMV to decrease
Quarterly Performance
1Q
5.5
8.4
5.2
19.2
42.4
4.1
23.4
39.3
10.4
13.0
79.3
12.2
0.8
-2.9
-3.6
-44.5
4.1
148.5
36.8
167.3
55.7
3.6
-12.5
FY24
2Q
3Q
5.8
6.0
9.2
10.8
5.7
6.1
20.7
22.9
36.1
43.0
4.2
5.1
25.2
28.5
31.6
38.2
10.9
13.3
14.3
15.2
69.2
45.1
12.7
13.0
1.5
2.2
-2.3
-1.6
-2.9
-2.2
-49.9
-43.9
4.5
162.1
41.5
121.7
56.6
6.1
-9.2
5.1
155.4
47.4
56.0
53.3
7.7
-5.5
4Q
4.4
11.2
3.0
18.6
-3.0
4.0
22.7
-2.9
9.8
12.9
0.3
11.9
1.0
-2.2
-5.5
227.6
4.7
58.0
29.6
-53.8
56.8
4.5
-9.9
1QE
2.3
5.8
2.4
10.4
-45.7
4.2
14.9
-36.3
8.5
6.4
-50.6
11.3
-4.9
-7.7
-8.4
135.5
4.3
68.3
7.0
-54.0
43.2
-32.8
-51.5
FY25E
2QE
3.1
7.7
3.2
14.0
-32.3
4.8
19.2
-23.9
9.3
9.8
-31.1
11.4
-1.6
-4.3
-5.4
88.1
4.6
81.9
3.0
-49.5
51.3
-8.1
-22.7
Neutral
Adj EBITDA CHANGE (%): FY25|FY26: NA|NA
Any further impact of the RBI notification to be a key
monitorable
FY24
3QE
3.4
8.5
3.5
15.4
-32.7
5.4
21.2
-25.6
10.6
10.6
-30.1
11.5
-0.9
-3.6
-4.8
119.5
5.0
106.5
-2.7
-31.4
50.1
-4.0
-17.1
4QE
4.4
11.1
3.9
22.4
20.7
5.3
28.0
23.4
11.4
16.6
29.2
12.3
4.3
1.5
1.3
-124.2
4.9
83.8
4.8
44.5
59.4
15.4
5.4
21.7
39.6
20.0
81.3
27.4
17.4
99.8
24.9
44.4
55.4
42.0
49.8
5.6
-9.1
-14.2
-19.9
18.3
523.9
38.4
48.1
55.5
5.6
-9.1
(INR b)
FY25E
13.2
33.1
12.9
62.3
-23.4
19.7
83.3
-16.5
39.7
43.5
-21.4
46.5
-3.0
-14.1
-17.3
21.6
18.8
340.5
3.0
-35.0
52.3
-3.6
-17.0
Payment Services to Consumers
Payment Services to Merchants
Financial Services and Others
Payment and Financial Services
% Change (YoY)
Commerce and Cloud Services
Revenue from Operations
% Change (YoY)
Direct Expenses
Contribution Profit
% Change (YoY)
Indirect Expenses
Adjusted EBITDA
EBITDA
PAT
% Change (YoY)
Operating Parameters
GMV (INRt)
Disbursements (INR b)
GMV Growth (%)
Disbursements Growth (%)
Asset Quality
Contribution Margin (%)
Adjusted EBITDA Margin (%)
EBITDA Margin (%)
Investment in securities market are subject to market risks. Read all the related documents carefully before investing
July 2024
19
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
NOTES
July 2024
20
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall be within following 30 days take
appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations, is engaged in
the business of providing Stock broking services, Depository participant services & distribution of various financial products. MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National
Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for
its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of
Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of
associate entities of Motilal Oswal Financial Services Limited are available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell the securities or
derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial
instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and
other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are
completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should be aware that MOFSL
may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment banking or brokerage
service
transactions.
Details
of
pending
Enquiry
Proceedings
of
Motilal
Oswal
Financial
Services
Limited
are
available
on
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https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental research and Technical
Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity and therefore it can
have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary
to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures
Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg.
No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong Kong. This report is intended for distribution only to
“Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available to professional investor and will be engaged only with
professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian
Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the
United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as am ended (the "Advisers Act" and together with the 1934 Act, the "Acts), and
under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOFSL, including the products and
services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act
and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any
investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption
from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission
("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agr eement with a U.S. registered broker-dealer, Motilal Oswal Securities
International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer,
MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research
analyst account.
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In Singapore, this report is being distributed by Motilal Oswal Capital Markets (Singapore) Pte. Ltd. (“MOCMSPL”) (UEN 201129401Z), which is a holder of a capital markets services license and an exempt
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investor” nor an “accredited investor”, they must immediately discontinue any use of this Report and inform MOCMSPL .
In respect of any matter arising from or in connection with the research you could contact the following representatives of MOCMSPL. In case of grievances for any of the services rendered by MOCMSPL
write to grievances@motilaloswal.com.
Nainesh Rajani
Email: nainesh.rajani@motilaloswal.com
Contact: (+65) 8328 0276
.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
The associates of MOFSL may have:
-
financial interest in the subject company
-
actual/beneficial ownership of 1% or more securities in the subject company at the end of the month immediately preceding the date of publication of the Research Report or date of the public
appearance.
-
received compensation/other benefits from the subject company in the past 12 months
-
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific
recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an
inherent conflict of interest in some of the stocks mentioned in the research report.
-
acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
July 2024
21
 Motilal Oswal Financial Services
June 2024 Results Preview | Sector: Financials
-
-
-
be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or
act as an advisor or lender/borrower to such company(ies)
received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
Served subject company as its clients during twelve months preceding the date of distribution of the research report.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider demat accounts
which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is,
or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
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This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any
way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOFSL. The report is based on the facts, figures
and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from publicly available media or other sources
believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All
such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or
subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not
treat recipients as customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to
any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an
offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation
that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make
their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment
by any recipient. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in
this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not
be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial risk and are not
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of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. This information is subject
to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its
associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document.
They may perform or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as
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022 40548083
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Registration details of group entities.: Motilal Oswal Financial Services Ltd. (MOFSL): INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412 . AMFI:
ARN .: 146822. IRDA Corporate Agent – CA0579. Motilal Oswal Financial Services Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Insurance, Bond, NCDs and IPO products.
Customer having any query/feedback/ clarification may write to query@motilaloswal.com. In case of grievances for any of the services rendered by Motilal Oswal Financial Services Limited (MOFSL) write to
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July 2024
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