December 2024 Results Preview | Sector: Financials
Financials: Banks
Result Preview
Muted quarter; unsecured asset quality remains under watch
Higher credit costs drive sharp earnings cuts across mid-size private banks
3QFY25 earnings estimates (INR b)
3Q
YoY
QoQ
PAT
FY25E (%)
(%)
Private Banks
AUBANK
4.9
30.2 -14.5
AXSB
63.9
5.2
-7.6
BANDHAN
8.0
8.6
-15.1
DCBB
1.4
9.3
-11.0
EQUITAS
0.8
-60.3 522.6
FB
10.3
2.2
-2.6
HDFCB
166.4
1.7
-1.0
ICICIBC
114.2 11.2
-2.8
IDFCFB
5.0
-30.1 149.3
IIB
14.4 -37.6
7.9
KMB
33.8
12.4
1.0
RBK
0.7
-70.0 -68.6
Private Total
423.7
2.3
-2.2
PSU Banks
BOB
44.0
-3.9 -16.0
CBK
40.1
9.8
0.0
INBK
25.8
21.8
-4.6
PNB
36.5
64.0 -15.3
SBIN
162.4 77.2 -11.4
UNBK
36.4
1.4
-22.9
PSU Total
345.2 36.3 -12.2
Banks Total
768.9 15.2
-6.9
Credit growth moderates; estimate FY25 credit growth at ~11%:
Systemic
credit growth has declined to ~11.5% from the recent high of ~16% amid a
slowdown in unsecured retail and demand moderation in certain other secured
segments. A few banks have already lowered their growth guidance (IIB, RBK),
while select large banks are also likely to report tepid full-year growth guidance
owing to a high CD ratio and rising asset quality concerns. Slower economic
activity as reflected in a slower GDP growth print is closely watched and may
drive growth moderation in Corporate/SME segments. While the incremental
LDR has moderated to below 80% (~100% in Jul’24), the outstanding LDR
remains elevated at ~80%. We thus estimate credit growth to be at ~11% for
FY25, while expect FY26 growth to be broadly maintained at 12.5%.
Deposit growth stood at 11.5% in Dec’24; CASA accretion remains a challenge:
Deposit growth has broadly followed a narrow range of 10-13% over the past 18
months and is up 7.8% YTD vs. the YTD credit growth of 7%. Further, deposit
competition remains aggressive as many banks are focusing on improving their
CD ratios, while competition from PSU banks is also picking up. CASA accretion
remains a challenge as depositors are locking in money at higher term deposit
rates ahead of a potential reversal in the rate cycle. Consequently, we estimate
the funding cost to stay elevated, thus maintaining pressure on margins. With
rate cuts projected in early CY25, the banking system’s yield will likely witness
further pressure over the coming quarters.
Asset quality stress remains elevated in MFI, unsecured retail; PSU banks are
well placed:
1HFY25 saw a deterioration in asset quality for select lenders, and
we believe that the asset quality stress will continue for lenders (mainly mid-size
private banks), especially those with exposure to the unsecured retail and MFI
segments. We factor in a rise in provisioning expenses for select players like IIB,
RBK, Equitas, Bandhan and IDFCFB, while large private/PSU banks are relatively
better positioned to navigate through the current cycle.
Estimate ~12.6% CAGR over FY25-27E for our banking coverage universe:
We
estimate NII for our banking coverage universe to grow ~7.3% YoY in 3QFY25,
while PPoP may grow 13.2% YoY and fall 3.8% QoQ. We thus estimate
private/PSU banks to report earnings growth of 2.3%/36.3% YoY in 3QFY25. We
estimate MOFSL Banking Universe earnings to grow by 15.2% YoY in 3QFY25,
while sector earnings would clock a 12.6% CAGR over FY25-27E.
Private Banks: PAT to grow ~2.3% YoY in 3QFY25 (5.8% YoY in 2QFY25 and
7% YoY in FY25E)
For the private banks under our coverage,
we estimate PPoP growth of 10.4%
YoY/ 0.6% QoQ and PAT growth of 2.3% YoY/decline of 2.2% QoQ in 3QFY25. We
also estimate a 15% CAGR in earnings over FY25-27.
We estimate NII to grow 9.3% YoY in 3QFY25.
Among large private banks under
our coverage, HDFCB’s growth is estimated to be at 6.5% YoY, ICICI at 10.9%
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
December 2024 Results Preview | Sector: Financials
YoY, Axis at 9% YoY, KMB at 8.9% YoY, and Federal at 15% YoY. For IIB, NII is
expected to decline by 0.3% YoY.
Opex is likely to follow a normalized trend,
as banks continue to invest in
branches and digital capabilities. Other income is anticipated to be modest as
bonds yields have seen a slight uptick, while markets have been volatile.
Overall slippages are expected to remain under control,
though unsecured
retail (especially MFI segment) is likely to witness high delinquencies. We
remain cautious about the credit quality outlook and factor in higher credit costs
across most mid-size banks with exposure to unsecured retail/MFI segments.
PSU Banks: PAT to grow 36% YoY (vs. 33.5% YoY in 2QFY25 and 19.7% YoY
in FY25E)
We estimate PSBs to report earnings growth of 36.3% YoY
(12.2% QoQ decline)
amid lower other income and tepid margins. NII is likely to see a modest 5.4% YoY
growth as the margin bias remains negative. Accordingly, we estimate PSU banks
to report a 10% CAGR in aggregate earnings over FY25-27.
Opex is likely to be under control,
as most of the wage-related provisions and
other opex were accounted for in FY24. Thus, we expect opex to follow a
normalized trajectory. Treasury performance is likely to remain muted as bond
yields have seen an uptick in 3Q, while equity markets have been volatile.
Asset quality is likely to remain robust:
Though 2Q saw a slight increase in SMA
pool, it should not translate into slippages. Moreover, healthy recoveries will keep
the credit cost under control. The asset quality developments in MSME segment,
along with ECL provisioning requirements, will be monitored closely to better
assess the credit cost outlook.
AUBANK’s
3QFY25 PAT is likely to grow 30.2% YoY to INR5b (aided by merger
with Fincare SFB, 14.5% QoQ decline). NII is expected to grow 53% YoY (2.6%
QoQ), while NIMs may decline marginally. Asset quality may witness a slight
deterioration with high delinquencies in MFI/Card segments.
EQUITASB
is estimated to report a modest quarter, with PAT expected to dip by
60% YoY as provisioning expenses remain elevated on both fresh slippages and
MFI slippages in the erstwhile quarters as per the provisioning policy. We
estimate advances growth at 20% YoY/3.6% QoQ, while NIMs may moderate by
18bp QoQ.
Small Finance Banks: Asset quality pressures to continue
Payments/Fintech: Credit cost to stay elevated; Paytm on track to report
adj. EBITDA breakeven in 4QFY25
SBICARDS:
Retail spend growth is likely to remain healthy, while NIMs may see a
slightly positive bias. However, asset quality stress is likely to continue, leading
to high credit costs. We thus estimate PAT to decline 21.5% YoY.
PAYTM:
We estimate 10% QoQ growth in GMV in 3QFY25 to INR4.9t. Revenue
from operations is projected to increase 8% QoQ to INR18b, while contribution
profit is estimated to rise 14% QoQ to INR10.12b in 3QFY25. Contribution
margin is thus likely to improve to ~56.6%.
December 2024
2
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
Top picks – ICICIBC, HDFCB, FB, and SBI
ICICIBC: Financial snapshot (INR b)
Y/E March
FY24 FY25E FY26E
NII
743 815 909
OP
581 666 750
NP
409 461 509
NIM (%)
4.7
4.4
4.2
EPS (INR)
58.4 65.6 72.4
EPS Gr (%)
27.5 12.4 10.4
ABV/Sh (INR)
315 371 434
Cons. BV/Sh (INR) 363 433 513
Ratios
RoA (%)
2.4
2.3
2.2
RoE (%)
18.9 18.1 17.2
Valuations
P/BV (x) (Cons)
3.6
3.0
2.5
P/ABV (x)
3.3
2.8
2.4
P/E (x)
22.4 19.9 18.0
Adj P/E (x)*
17.9 16.0 14.5
*Adj for Investment in Subs
ICICIBC (BUY)
ICICIBC has consistently delivered strong performance, achieving ~17% CAGR in
loans over FY22-FY24, driven by Retail, BB, and SME segments. The bank’s focus
on leveraging data analytics for onboarding and credit assessment has been
pivotal.
Asset quality remains robust, with healthy PCR (~79%) and adequate contingent
provisions (INR131b, ~1% of loans). Despite delinquencies in unsecured loans
(14% of total portfolio), credit costs are expected to normalize at ~50bp over
FY26-27E.
Margins have moderated, with NIMs declining by 27bp to 4.27% in the past
year. The pace of compression has slowed, and management expects stability in
the near term, although a potential rate cut may create further pressure.
Deposit growth has outpaced the industry, driven by enhancements in digital
banking and a robust branch network. CASA accretion remains under pressure
amid elevated rates, with the CASA ratio at 40.6% in 2QFY25.
Fee income growth remains healthy, supported by Retail and BB segments
(~78% of total fees). Continued investments in technology and digital platforms
are driving operational efficiency, with the cost-to-income ratio expected to
remain stable at ~39%.
ICICIBC is poised to deliver superior performance, supported by strong loan
growth, robust asset quality, and industry-leading return ratios. We estimate
RoA/RoE at 2.1%/16.7% in FY27E. Adjusted for its subsidiaries, the standalone
bank currently trades at 2.4x 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)
Ratios
RoA (%)
RoE (%)
Valuations
P/E(X)
P/E(X)*
P/BV (X)
22.5
18.8
3.1
20.5
17.1
2.8
18.2
15.2
2.5
2.2
1.8
14.6
1.8
14.3
1.8
14.4
1,085 1,213 1,348
944
608
3.4
80.0
1.0
580
555
990 1,124
668
3.4
87.9
9.8
647
618
751
3.5
98.8
12.4
725
693
HDFCB (BUY)
P/ABV (X)*
2.7
2.4
*Adj for Investment in Subs
HDFC Bank (HDFCB) is navigating post-merger short-term challenges, including
high CD ratios and inherited high-cost borrowings, with a strategic focus on
deposit mobilization and balance sheet optimization.
Loan growth is recovering, driven by Retail and CRB portfolios, which now
contribute ~82% of the mix. We estimate a loan CAGR of ~10% and deposit
CAGR of ~16% over FY24-27E.
Margins are stabilizing, with NIM improving to 3.46% in 2QFY25. The bank
expects further recovery as high-cost borrowings mature and the mix shifts
toward high-yielding assets. NIMs are projected at ~3.6% by FY27.
Asset quality remains strong, with GNPA/NNPA at 1.4%/0.4%. A robust provision
buffer of INR262b (~1.1% of loans) offers comfort against potential credit risks.
Operating efficiency is improving, with stable cost ratios despite continued
investments. Cost-to-income and cost-to-asset ratios are projected to decline to
~39% and 1.7%, respectively, by FY27.
HDFCB is positioned to deliver steady growth and profitability, supported by
strategic liability management, margin recovery, and a strong focus on asset
quality. We estimate RoA/RoE at 1.9%/14.9% in FY27. The standalone bank
trades at 2.3x FY26E ABV.
December 2024
3
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
FB: Financial snapshot (INR b)
Y/E Mar
FY24 FY25E FY26E
NII
82.9 96.0 114.6
OP
51.7 61.1 75.3
NP
37.2 41.0 48.1
NIM (%)
3.3
3.2
3.2
EPS (INR)
16.3 16.8 19.7
EPS Gr. (%)
14.5
3.0 17.2
BV/Sh. (INR)
119
135
153
ABV/Sh. (INR) 113
128
145
Ratios
ROA (%)
1.3
1.2
1.2
ROE (%)
Valuations
P/E(X)
P/BV (X)
P/ABV (X)
14.7
12.0
1.6
1.7
13.3
11.7
1.5
1.5
13.7
10.0
1.3
1.4
Federal Bank (BUY)
FB has maintained its strong growth trajectory, leveraging fintech collaborations
and data-driven strategies for product distribution and customer acquisition.
With new leadership in place, the bank is well-positioned to enhance
profitability and navigate regulatory challenges effectively.
FB reported robust credit growth of 19.4% YoY in 2QFY25, with advances
estimated to clock an 18% CAGR over FY25-27. High-yielding products such as
credit cards, personal loans, and microfinance are driving this expansion,
supported by disciplined underwriting practices.
Deposits grew 15.6% YoY in 2QFY25, led by strong term deposit inflows, while
CASA ratio improved sequentially to 30.1%. Fintech partnerships remain crucial
for optimizing the deposit base and enhancing cross-selling opportunities,
positioning FB for steady growth.
NIM contracted slightly to 3.12% in 2QFY25 due to higher funding costs, but it is
expected to stabilize at ~3.3% by FY27, driven by a shift toward high-margin
products. The C/I ratio is projected to decline gradually from 54.5% in FY24 to
~50% by FY27, supported by digital initiatives and operational efficiency.
FB continues to exhibit robust asset quality, with GNPA/NNPA ratios at
2.1%/0.57% in 2QFY25. The bank’s strong underwriting and recovery processes
are expected to keep credit costs stable at 30-40bp over FY25-27, with GNPA
projected to reduce to 1.8% by FY27.
FB is well-positioned for sustainable growth, supported by strong deposit
franchise, disciplined risk management, and focus on high-yielding products. We
estimate RoA/RoE at 1.3%/14.9% by FY27. The stock is trading at 1.4x FY26E
ABV.
SBI: Financial snapshot (INR b)
Y/E March
FY24 FY25E FY26E
NII
OP
NP
NIM (%)
EPS (INR)
EPS Gr. (%)
ABV (INR)
Cons. BV (INR)
Ratios
RoA (%)
RoE (%)
Valuations
P/BV (x) (Cons.)
P/ABV (x)*
P/E (x)
1.8
1.5
10.6
1.5
1.3
9.0
1.3
1.1
8.1
6.4
1.0
18.8
1.1
18.8
1.1
17.4
1,599 1,684 1,845
867 1,130 1,238
611
3.1
68.4
21.6
365
448
711
2.9
79.6
16.4
432
523
763
2.9
85.5
7.4
499
617
SBI (BUY)
P/E (x)*
8.0
6.9
*Adj for Investment in Subs
SBIN delivered consistent loan growth of ~16% YoY in FY24 and 15.3% YoY in
1HFY25. Retail loans (~36% of portfolio) grew modestly, with PL showing
recovery. Corporate and SME segments have shown strong growth, with GNPA
in SMEs reducing significantly to 3.6% in 2QFY25. A robust credit pipeline of
INR6t positions SBIN for 14-15% growth, outpacing systemic credit expansion.
Asset quality metrics remain strong, with GNPA/NNPA ratios at 2.13%/0.53% in
2QFY25 and a healthy PCR of ~76% (92% including write-offs). Credit costs are
expected to remain benign at ~50bp over FY26-27E, supported by disciplined
underwriting and recoveries.
Deposits grew 9.1% YoY in 1HFY25, maintaining a leadership position with a
~24% market share and a low domestic CD ratio of ~67.9%. SBIN is poised for an
~11% deposit CAGR over FY25-27E, focusing on retail deposits. Its comfortable
LCR of 130% adds to its stability.
NIMs were stable at 3.14% in 2QFY25. Having 40% of its portfolio linked to
MCLR insulates SBIN from rate cuts. Digitalization efforts and branch
rationalization have improved operational efficiency, with the C/I ratio
projected to improve to ~49% by FY27E.
SBIN is well-positioned for sustainable growth, backed by strong loan growth,
controlled credit costs, and digital transformation. We estimate a 12% earnings
CAGR over FY24-27E, with RoA/RoE at 1.1%/17.3% by FY27E. The standalone
bank trades at 1.1x FY26E ABV.
December 2024
4
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
Exhibit 1:
Banks: 3QFY25 earnings estimates
Rating
Financials
AU Small Finance
Axis Bank
Bandhan Bank
DCB Bank
Equitas Small Finance
Federal Bank
HDFC Bank
ICICI Bank
IDFC First Bank
IndusInd Bank
Kotak Mahindra Bank
RBL Bank
Banks – Private
Bank of Baroda
Canara Bank
Indian Bank
Punjab National Bank
State Bank of India
Union Bank
Banks – PSU
Total Banks
SBI Cards
PAYTM
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
Neutral
Buy
Neutral
Neutral
Dec’24
NII (INR m)
YoY (%) QoQ (%)
52.9
9.0
18.7
12.6
5.7
15.0
6.5
10.9
15.7
-0.3
8.9
0.6
9.3
8.3
2.1
9.1
4.6
6.2
0.2
5.4
7.3
13.0
-36.9
2.6
1.3
1.6
4.8
3.4
3.1
0.7
3.3
3.6
-1.2
1.7
-3.7
1.6
3.5
3.2
2.4
2.4
1.6
1.5
2.1
1.9
4.3
8.4
Operating profit (INR m)
Dec’24
YoY (%) QoQ (%)
11,109
1,02,990
23,967
2,353
3,561
15,505
2,47,596
1,67,120
20,276
36,044
52,323
9,937
6,92,779
78,654
75,007
45,394
65,814
2,70,482
70,041
6,05,391
12,98,169
18,160
-793
69.1
12.7
44.8
11.2
-1.2
7.9
4.7
13.5
29.8
-10.8
14.6
29.9
10.4
12.1
10.2
10.8
4.0
33.0
-3.8
16.7
13.2
12.1
NA
-1.8
-3.9
29.2
-7.8
1.8
-1.0
0.2
-0.1
3.3
0.1
2.6
9.2
0.6
-17.0
-2.0
-4.0
-4.0
-7.7
-13.7
-8.4
-3.8
3.3
NA
Net profit (INR m)
Dec’24
YoY (%) QoQ (%)
4,887
63,894
7,957
1,384
802
10,293
1,66,449
1,14,222
5,004
14,358
33,788
700
4,23,737
44,003
40,142
25,814
36,464
1,62,373
36,387
3,45,183
7,68,920
4,313
-3,561
30.2
5.2
8.6
9.3
-60.3
2.2
1.7
11.2
-30.1
-37.6
12.4
-70.0
2.3
-3.9
9.8
21.8
64.0
77.2
1.4
36.3
15.2
-21.5
NA
-14.5
-7.6
-15.1
-11.0
522.6
-2.6
-1.0
-2.8
149.3
7.9
1.0
-68.6
-2.2
-16.0
0.0
-4.6
-15.3
-11.4
-22.9
-12.2
-6.9
6.6
NA
20,255
1,36,557
29,968
5,335
8,295
24,411
3,03,356
2,07,058
49,589
52,810
71,355
15,545
9,24,534
Buy
1,20,254
Buy
96,112
Buy
63,430
Neutral 1,07,702
Buy
4,22,762
Buy
91,824
9,02,084
18,26,618
Neutral 15,667
Neutral 18,002
Exhibit 2:
We cut our earnings estimates by 2.4%/2.7% for FY26E/FY27E, factoring in higher credit costs and a moderation in
loan growth, margins; estimate 12.6% earnings CAGR over FY25-27
INR b
FY25E
Private Banks
AXSB
BANDHAN
DCBB
HDFCB
ICICIBC
IDFCFB
IIB
KMB
FB
RBK
AUBANK
EQUITASB
Total Pvt
- YoY growth
PSU Banks
BOB
CBK
INBK
PNB
SBIN
UNBK
Total PSU
- YoY growth
Total Banks
- YoY growth
262.6
39.1
5.9
670.0
458.3
24.4
73.8
144.3
41.6
10.2
22.4
3.6
1,756.4
8.2%
185.5
162.6
105.2
156.5
712.3
155.6
1,477.6
19.8%
3,234.0
13.2%
Old Estimates
FY26E
303.2
42.6
7.7
760.5
507.2
40.2
99.8
161.0
49.4
17.2
29.2
8.3
2,026.4
15.4%
203.6
183.6
114.0
176.8
764.0
170.7
1,612.7
9.1%
3,639.1
12.5%
FY27E
356.4
47.8
9.7
877.9
574.7
51.7
126.9
193.4
60.4
25.5
38.7
11.7
2,374.8
17.2%
225.0
205.2
127.8
200.8
864.5
189.4
1,812.8
12.4%
4,187.6
15.1%
Revised Estimates
FY25E
FY26E
FY27E
263.7
36.6
5.8
667.9
460.7
21.3
65.8
141.1
41.0
7.7
21.1
3.0
1,735.7
7.0%
186.7
161.7
103.3
156.3
710.8
158.3
1,477.1
19.7%
3,212.8
12.5%
290.7
38.5
7.4
750.6
508.7
35.7
87.4
156.0
48.1
13.6
27.7
7.3
1,971.6
13.6%
197.6
170.5
112.0
174.1
763.3
164.3
1,581.8
7.1%
3,553.4
10.6%
334.8
44.6
9.4
855.0
578.6
49.3
110.6
184.8
59.2
21.6
36.0
11.1
2,295.1
16.4%
218.2
191.0
122.9
196.4
869.4
179.7
1,777.6
12.4%
4,072.7
14.6%
FY25E
0.4%
-6.4%
-1.2%
-0.3%
0.5%
-12.9%
-10.9%
-2.2%
-1.4%
-24.4%
-5.9%
-16.6%
-1.2%
% Change
FY26E
-4.1%
-9.7%
-3.9%
-1.3%
0.3%
-11.0%
-12.4%
-3.1%
-2.7%
-21.0%
-5.2%
-12.9%
-2.7%
FY27E
-6.1%
-6.6%
-2.7%
-2.6%
0.7%
-4.7%
-12.9%
-4.4%
-2.1%
-15.2%
-6.8%
-4.9%
-3.4%
0.6%
-0.6%
-1.8%
-0.1%
-0.2%
1.7%
0.0%
-0.7%
-3.0%
-7.1%
-1.8%
-1.5%
-0.1%
-3.7%
-1.9%
-2.4%
-3.0%
-6.9%
-3.9%
-2.2%
0.6%
-5.1%
-1.9%
-2.7%
December 2024
5
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
Exhibit 3:
Loan growth declined to 11.5%
Loans (INR t)
Chg YoY (%)
Exhibit 4:
Deposit growth broadly stable at 11.5%
Deposits (INR t)
Chg YoY (%)
Exhibit 5:
MFI industry: Mix of bank loans stood at ~32%; MFI industry size at INR4.1t
Banks have reduced their
MFI industry loan mix from
40% in FY22 to 32% in
2QFY25
Micro-credit loan
outstanding
across lenders
SFB
17%
NBFC
11%
Others
1%
NBFC - MFIs
39%
Banks
32%
Source: MFIN, MOFSL Company
Exhibit 6:
Personal loan growth moderates across banks…
Personal Loan growth (%)
HDFC Bank
ICICI Bank
Axis Bank
Kotak
SBI
BoB
2QFY25
6.1
17.3
23.3
16.8
6.6
25.2
1QFY25
5.2
24.9
29.4
21.7
11.2
39.2
2QFY24
15.4
40.4
24.7
35.3
17.8
67.3
Exhibit 7:
…so does the growth in credit cards
Credit Card O/s growth (%)
HDFC Bank
ICICI Bank
Axis Bank
Kotak
SBI Cards
2QFY25
20.7
27.9
22.0
14.7
23.0
1QFY25
14.3
31.3
22.4
28.9
21.5
2QFY24
10.9
29.5
73.7
59.4
19.3
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 8:
Estimate NIMs to exhibit a slight downward bias
PSU
4.34
Private
4.55
3.12
4.43
3.09
4.16
4.13
3.11
4.23
2.80
4.24
2.80
4.46
4.70
3.22
4.65
3.24
4.13
2.99
4.10
2.94
4.03
2.90
3.04
3.08
2.91
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
3QFY24
4QFY24
1QFY25
2QFY25
3QFY25
Exhibit 9:
Snapshot of additional provision buffers as of 2QFY25
Large banks continue to
carry healthy contingency
buffers
As on 1QFY25
AXSB
HDFCB
ICICIBC
IIB
AUBANK
Loans
(INR b)
9,999
24,951
12,772
3,572
896
COVID/conting Floating/additi
ent provisions onal provisions
50.1
66.9
145
124
131
-
15
-
0.2
0.4
Total
provisions
118
269
131
15
0.6
As a percentage
of loans (%)
1.2
1.1
1.0
0.4
0.1
Source: MOFSL, Company
December 2024
6
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
Exhibit 10:
AXSB, FB, KMB, ICICIBC, and HDFCB have higher EBLR/Repo-linked loans; PSBs have higher linkage to MCLR (%)
Loans Mix
(%) - 2QFY25
AUBANK
AXSB
CBK
FB
HDFCB
ICICIBC
INBK
KMB
PNB
RBL**
SBIN*
BOB
MCLR
28
11
48
10
27
16
58
13
34
7
36
47
EBLR
10
4
41
50
43
1
60
8
35
27
Repo linked
53
51
36
-
41
58
Others (fixed, base rate, and
foreign currency-floating)
62
32
11
40
31
32
6
27
17
33
34
20
*as on 1QFY25 **as on 4QFY24; Source: MOFSL, Company
Exhibit 11:
Snapshot of restructured book across banks (INR b)
AXSB
BANDHAN
DCBB
HDFCB
ICICIBC
IIB
KMB
FB
RBK
AUBANK
BOB
SBIN
INBK
PNB
UNBK
CBK
Absolute
13.2
NA
9.2
NA
25.5
10.4
2.5
16.4
3.3
3.8
NA
148.3
71.4
NA
112.4
NA
Sep’22
0.38
0.2
5.45
0.53
0.7
1.5
0.34
2.03
2.21
1.7
2.12
0.93
3.9
1.8
2.6
2.09
Mar’23
0.22
NA
4.51
0.31
0.4
0.84
0.22
1.62
1.21
1.2
1.5
0.8
2.51
1.32
2.2
NA
Jun’23
0.21
NA
3.97
NA
NA
0.66
0.19
1.4
1.05
1
1.31
0.69
2.19
NA
2
NA
Sep’23
0.2
NA
3.4
0.22
0.32
0.54
0.15
1.3
0.89
0.8
NA
0.62
2.12
NA
1.71
NA
Mar’24
0.16
NA
2.62
NA
0.26
0.40
0.10
0.97
0.51
0.60
NA
0.47
1.67
NA
1.48
NA
Jun’24
Sep’24
0.14
0.13
NA
NA
2.34
2.07
NA
NA
0.22
0.20
0.34
0.29
0.08
0.06
0.83
0.71
0.44
0.38
0.40
0.40
NA
NA
0.43
0.38
1.51
1.34
NA
NA
1.30
1.21
NA
NA
Source: MOFSL, Company
Exhibit 12:
Trend in MFI delinquencies for banks (%)
Banks have been witnessing
stress in MFI segment, with
91-180 PAR rising to 1.4% in
2QFY25 from 0.9% in
4QFY24
0.6 0.6
0.5
PAR 61-90
PAR 91-180
Source: MFIN
2QFY24
1.4
1.1
0.7
0.7 0.7
0.8
0.7
1.0 1.0
0.9
3QFY24
4QFY24
1QFY25
2QFY25
1.4
1.3
PAR 31-60
Exhibit 13:
SMA mix across banks as of 2QFY25
SMA (bp of loans)
BOB
CBK
INBK
PNB
SBIN
UNBK
BANDHAN
KMB
SMA 0
NA
33bp
NA
NA
NA
61bp
150bp
NA
SMA 1
47bp
7bp
27bp
NA
31bp
3bp
90bp
NA
108bp
62bp
16bp
5bp
19bp
90bp
4bp
SMA 2
Source: MOFSL, Company
December 2024
7
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
Exhibit 14:
Retail loan growth declined to 13% YoY; retail
loan mix at 34% in Oct’24
Agri
30%
20%
10%
0%
-10%
Exhibit 15:
Credit cards growth declined to 17% YoY;
Housing/Retail loan growth too declined to 12%/13% YoY in
Oct-24
Retail YoY (%)
48%
36%
24%
Housing YoY (%)
Credit Card
Industry
Services
Retail
12%
0%
Source: MOFSL, RBI
Source: MOFSL, RBI
Exhibit 16:
CD ratio stood at 79.7% as of Dec’24
82.0%
78.5%
75.0%
71.5%
68.0%
CD Ratio (%)
79.7%
Exhibit 17:
Three-year G-Sec yield stood at 6.87% in Dec’24
10.0
Gvt 3 Yr Bond Yield (%)
6.87
8.3
6.5
4.8
3.0
Source: MOFSL, RBI
Source: MOFSL, BBG
Exhibit 18:
Five-year G-Sec yield increased to 6.88%
8.0
7.0
6.0
Gvt 5 Yr Bond Yield (%)
6.88
Exhibit 19:
10-year G-Sec yield stood at 6.92% in Dec’24
8.0
7.3
6.5
5.8
5.0
Gvt 10 Yr Bond Yield (%)
6.92
5.0
4.0
Source: MOFSL, BBG
Source: MOFSL, BBG
Exhibit 20:
Relative performance – three months (%)
Nifty Index
102
98
94
90
MOFSL Financials Index
Exhibit 21:
One-year relative performance (%)
Nifty Index
120
110
100
90
MOFSL Financials Index
Source: MOFSL, Company
Source: MOFSL, Company
December 2024
8
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
Exhibit 22:
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
1,284
1,782
1,072
160
1,788
969
200
121
64
65
568
158
793
103
241
100
123
517
987
678
Buy
58.4
Buy
80.0
Neutral 80.7
Neutral 13.8
Neutral 69.4
Buy
115.5
Buy
16.3
Buy
17.1
Neutral 4.3
Buy
7.1
Buy
23.0
Neutral 19.3
Buy
Neutral
Buy
Buy
Buy
Buy
Neutral
Neutral
68.4
7.5
34.4
16.0
18.9
62.2
-22.4
25.4
65.3
88.2
85.1
24.3
72.6
94.9
17.1
18.8
3.5
3.1
31.8
16.9
79.8
13.9
35.8
17.9
20.4
77.3
-26.2
21.5
72.2
100.1
98.2
26.5
81.0
128.2
20.3
24.7
5.7
7.3
39.3
28.4
85.6
15.4
39.3
20.2
22.4
83.7
-10.5
30.1
17.6
18.6
12.0
11.6
16.9
8.4
12.3
7.0
14.9
9.1
24.7
8.2
7.9
13.7
7.0
6.3
6.5
8.3
-44.1
26.7
15.7
16.9
11.4
6.6
16.1
10.2
11.7
6.4
18.6
20.7
17.9
9.3
6.8
7.4
6.7
5.6
6.0
6.7
-37.7
31.6
14.2
14.9
9.8
6.0
14.5
7.6
9.9
4.9
11.3
8.8
14.5
5.6
6.3
6.7
6.1
5.0
5.5
6.2
-93.6
22.5
3.0
2.6
2.0
1.2
2.4
1.2
1.7
0.8
1.4
1.2
3.0
0.6
1.3
1.1
1.1
1.1
1.0
1.3
4.7
5.3
2.6
2.3
1.7
1.1
2.1
1.1
1.5
0.7
1.3
1.2
2.5
0.6
1.1
1.0
1.0
1.0
0.9
1.1
5.1
4.6
2.3
2.0
1.4
0.9
1.8
1.0
1.3
0.6
1.2
1.1
2.2
0.6
1.0
0.9
0.9
0.8
0.8
1.0
5.4
3.9
18.9
14.6
18.0
10.8
15.3
15.3
14.7
11.8
10.2
14.4
13.1
8.2
18.8
8.7
17.8
20.2
16.7
17.1
-10.7
22.0
18.0
14.4
16.1
17.0
13.9
11.2
13.4
11.7
7.3
5.9
15.4
6.7
18.8
14.4
16.2
19.3
15.9
18.4
-21.4
15.7
17.1
14.6
15.9
16.3
13.6
13.6
14.1
13.7
11.0
12.8
16.2
10.7
17.4
14.1
15.7
18.9
15.4
17.3
-1.7
18.8
December 2024
9
 Motilal Oswal Financial Services
December 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: INR568 | TP: INR730 (+29%)
Expect margins to see moderation
Expect business growth to remain healthy
Quarterly Performance
Net Interest Income
% Change (Y-o-Y)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (Y-o-Y)
Provisions
Exceptional item
Profit before Tax
Tax
Net Profit
% Change (Y-o-Y)
Operating Parameters
Deposit (INR b)
Loan (INR b)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
GNPA (%)
NNPA (%)
PCR (%)
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
4.1
16.6
10.3
6.3
26.0
1.0
-
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
1Q
19.2
54.1
5.1
24.3
14.8
9.5
74.3
2.8
-
6.7
1.7
5.0
29.9
972.9
896.5
40.4
42.6
1.8
0.6
65.1
FY25E
2Q
19.7
58.1
6.4
26.1
14.8
11.3
80.0
3.7
-
7.6
1.9
5.7
42.1
1,096.9
948.4
44.8
47.8
2.0
0.8
62.8
FY24
3QE
20.3
52.9
6.5
26.8
15.7
11.1
69.1
4.6
-
6.5
1.6
4.9
30.2
1,147.6
987.3
43.2
47.9
2.2
0.8
63.1
4QE
20.9
56.0
7.3
28.2
17.0
11.2
68.4
3.8
-
7.4
1.9
5.5
48.0
1,193.3
1,059.5
36.9
44.8
2.3
0.8
65.6
51.6
16.5
17.5
69.0
44.6
24.4
20.7
4.4
-
20.0
4.6
15.3
7.5
871.8
731.6
25.7
25.2
1.7
0.5
64.3
Buy
EPS CHANGE (%): FY25|FY26: -4.1|-3.4
CoF and C/I ratios are expected to remain elevated
Asset quality ratios to see a slight deterioration
(INR b)
FY25E
80.1
55.2
25.3
105.4
62.2
43.1
76.9
15.0
-
28.1
7.0
21.1
37.5
1,193.3
1,059.5
36.9
44.8
2.3
0.8
65.6
Axis Bank
CMP: INR1072 | TP: INR1,225 (+14%)
Expect CD ratio to moderate
Expect margin to witness a mild moderation
Quarterly Performance
Net Interest Income
% Change (Y-o-Y)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (Y-o-Y)
Provisions
Profit before Tax
Tax
Net Profits
% Change (Y-o-Y)
Operating Parameters
Deposit (INR t)
Loan (INR t)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
E: MOFSL Estimates
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
1Q
134.5
12.5
57.8
192.3
91.3
101.1
14.7
20.4
80.7
20.3
60.3
4.1
10.6
9.8
12.8
14.2
1.5
0.3
78.1
FY25E
2Q
3QE
134.8
136.6
9.5
9.0
67.2
63.5
202.1
200.0
94.9
97.1
107.1
103.0
24.1
12.7
22.0
17.6
85.1
85.4
15.9
21.5
69.2
63.9
18.0
5.2
10.9
10.0
13.7
11.4
1.4
0.3
76.6
11.4
10.4
13.7
11.4
1.5
0.4
76.3
4QE
140.9
7.7
69.5
210.5
100.9
109.6
4.0
16.1
93.5
23.2
70.3
-1.4
12.0
10.8
12.1
11.7
1.5
0.4
76.1
Neutral
EPS CHANGE (%): FY25|FY26: 0.4|-4.1
Cost ratios expected to remain elevated
Asset quality ratios to see a mild increase
(INR b)
FY24
498.9
16.2
224.4
723.4
352.1
371.2
16.8
40.6
330.6
82.0
248.6
15.2
10.7
9.7
12.9
14.2
1.5
0.3
78.5
FY25E
546.8
9.6
258.1
804.9
384.1
420.7
13.3
76.1
344.7
81.0
263.7
6.1
12.0
10.8
12.1
11.7
1.5
0.4
76.1
December 2024
10
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
Bandhan Bank
CMP: INR160 | TP: INR180 (+13%)
Expect NIM to see a decline
Asset quality to see a mild increase
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
FY24
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
Neutral
EPS CHANGE (%): FY25|FY26: -6.4|-9.7
Expect business growth to be healthy in 2H
Cost ratios likely to remain elevated
FY25E
2Q
29.5
20.7
5.9
35.4
16.9
18.6
17.2
6.1
12.5
3.1
9.4
30.0
1,425
1,261
27.2
23.6
4.7
1.3
73.5
FY24
3QE
30.0
18.7
11.7
41.6
17.7
24.0
44.8
13.3
10.6
2.7
8.0
8.6
1,486
1,322
26.5
20.0
5.1
1.4
73.0
4QE
30.9
7.6
7.1
38.0
18.9
19.1
3.8
7.9
11.2
2.5
8.6
1,482.9
1,575
1,395
16.5
15.2
5.3
1.5
73.5
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
120.4
16.6
30.0
150.4
69.4
81.0
22.0
32.5
48.5
11.9
36.6
64.2
1,575
1,395
16.5
15.2
5.3
1.5
73.5
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
1Q
30.1
20.7
5.3
35.3
15.9
19.4
24.2
5.2
14.2
3.5
10.6
47.5
1,332
1,216
22.8
23.8
4.2
1.2
73.7
Bank of Baroda
CMP: INR241 | TP: INR290 (+20%)
Expect cost ratios to remain under control
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
1Q
116.0
5.5
24.9
140.9
69.3
71.6
-8.5
10.1
61.5
16.9
44.6
9.5
13,070
10,479
8.9
8.8
2.9
0.7
76.6
FY25E
2Q
116.2
7.3
51.8
168.0
73.3
94.8
18.2
23.4
71.4
19.0
52.4
23.2
13,635
11,212
9.1
12.3
2.5
0.6
76.3
FY24
3QE
120.3
8.3
33.0
153.3
74.6
78.7
12.1
19.8
58.8
14.8
44.0
-3.9
14,198
11,502
14.0
12.3
2.4
0.6
76.5
4QE
123.5
4.7
45.4
168.8
81.0
87.8
8.3
22.4
65.4
19.7
45.7
-6.4
14,676
11,937
10.6
12.0
2.3
0.5
76.8
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: 0.6|-3.0
Margins to remain broadly stable
Business growth likely to be healthy
(INR b)
FY25E
475.9
6.4
155.1
631.0
298.2
332.8
7.5
75.7
257.2
70.5
186.7
4.9
14,676
11,937
10.6
12.0
2.3
0.5
76.8
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 (%)
E: MOFSL Estimates
December 2024
11
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
Canara Bank
CMP: INR100 | TP: INR125 (+25%)
Expect margins to remain largely flat
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
91.7
5.8
53.2
144.9
68.7
76.2
0.2
22.8
53.3
14.3
39.1
10.5
13,352
9,464
12.0
10.7
4.1
1.2
71.0
FY25E
2Q
3QE
93.2
96.1
4.6
2.1
49.8
48.2
143.0
144.3
66.4
69.3
76.5
75.0
0.5
10.2
22.5
21.1
54.0
53.9
13.9
13.7
40.1
40.1
11.3
9.8
13,473
9,840
9.3
10.3
3.7
1.0
74.1
13,778
10,088
9.1
9.6
3.5
0.9
74.2
4QE
97.6
1.8
55.6
153.1
73.8
79.3
7.3
23.8
55.5
13.1
42.3
12.7
14,252
10,360
8.6
11.2
3.4
0.9
74.0
Buy
EPS CHANGE (%): FY25|FY26: -0.6|-7.1
Advances and deposit growth to be the key monitorables
Expect cost to remain broadly under control
(INR b)
FY24
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
FY25E
378.5
3.5
206.7
585.2
278.2
307.0
4.4
90.3
216.7
55.0
161.7
11.1
14,252
10,360
8.6
11.2
3.4
0.9
74.0
Net Interest Income
% Change (Y-o-Y)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (Y-o-Y)
Other Provisions
Profit before Tax
Tax
Net Profit
% Change (Y-o-Y)
Operating Parameters
Deposit (INR b)
Loan ( (INR b)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
E: MOFSL Estimates
DCB Bank
CMP: INR121 | TP: INR160 (+32%)
Expect business growth to remain healthy
Expect cost ratios to remain under control
Quarterly Performance
1Q
4.71
25.88
1.07
5.78
3.69
2.09
25.61
0.38
1.71
0.44
1.27
30.7
430.1
354.7
22.6
19.0
3.26
1.19
64.1
FY24
2Q
4.76
15.72
1.07
5.83
3.73
2.11
15.32
0.40
1.71
0.44
1.27
12.9
455.0
372.8
23.1
19.1
3.36
1.28
62.8
3Q
4.74
6.27
1.24
5.98
3.86
2.12
8.96
0.41
1.71
0.44
1.27
11.2
471.2
389.5
19.3
18.2
3.43
1.22
65.1
4Q
5.07
4.43
1.36
6.44
4.10
2.34
(4.19)
0.24
2.10
0.54
1.56
9.5
493.5
409.2
19.7
19.0
3.23
1.11
66.4
1Q
4.97
5.49
1.43
6.40
4.34
2.05
(1.58)
0.28
1.77
0.46
1.31
3.5
516.9
421.8
20.2
18.9
3.33
1.18
65.2
FY25E
2QE
5.09
7.03
2.05
7.14
4.59
2.55
21.19
0.46
2.10
0.54
1.55
22.6
545.3
444.7
19.9
19.3
3.29
1.17
65.2
FY24
3QE
5.34
12.56
1.72
7.06
4.70
2.35
11.24
0.49
1.86
0.48
1.38
9.3
565.7
463.7
20.1
19.0
3.24
1.15
65.3
4QE
5.58
9.95
1.92
7.50
4.81
2.68
14.72
0.58
2.10
0.54
1.56
0.1
587.3
487.0
19.0
19.0
3.15
1.10
65.8
19.28
12.28
4.74
24.02
15.38
8.64
9.88
1.42
7.22
1.86
5.36
15.1
493.5
409.2
19.7
19.0
3.25
1.11
66.4
Buy
EPS CHANGE (%): FY25|FY26: -1.2|-3.9
Asset quality to witness an improvement
Margin to largely remain flat
(INR b)
FY25E
20.97
8.78
7.11
28.09
18.45
9.64
11.51
1.81
7.83
2.02
5.81
8.42
587.3
487.0
19.0
19.0
3.15
1.10
65.8
Net Interest Income
% Change (Y-o-Y)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (Y-o-Y)
Provisions
Profit before Tax
Tax
Net Profit
% Change (Y-o-Y)
Operating Parameters
Deposit (INR b)
Loan (INR b)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
E: MOFSL Estimates
December 2024
12
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
Equitas Small Finance Bank
CMP: INR65 | TP: INR80 (+23%)
Expect NIM to decline in 3Q
Asset quality to be under pressure
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
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
343
361
310
23
42
20
2.6
1.2
56.1
1Q
15.0
7.0
8.0
7.9
2.1
10.1
6.7
3.4
9.1
3.0
0.4
0.1
0.3
-86.5
349
375
319
18
35
16
2.7
0.8
70.3
FY25E
2Q
3QE
15.5
16.4
7.5
8.1
8.0
8.3
4.8
5.7
2.4
2.5
10.4
10.7
6.9
7.2
3.5
3.6
5.9
-1.2
3.3
2.5
0.2
1.1
0.1
0.3
0.1
0.8
-93.5
-60.3
361
399
340
15
29
18
3.0
1.0
67.7
390
412
352
19
27
20
3.2
1.0
69.2
4QE
17.6
9.0
8.6
10.1
2.7
11.4
7.5
3.9
3.6
1.5
2.3
0.6
1.8
-14.1
407
430
367
18
19
18
3.3
1.0
70.7
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
343
361
310
23
42
20
2.6
1.2
56.1
Buy
EPS CHANGE (%): FY25|FY26: -16.6|-12.9
Expect cost ratios to remain elevated
Business growth to be a key montorable
INRb
FY25E
64.6
31.6
33.0
7.1
9.7
42.6
28.3
14.3
4.1
10.4
4.0
1.0
3.0
-62.8
407
430
367
18
19
18
3.3
1.0
70.7
Federal Bank
CMP: INR200| TP: INR230 (+15%)
Business growth to be healthy
Expect cost ratios to remain broadly 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: -1.4|-2.7
Margins to witness a marginal decline
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
1Q
22.9
19.5
9.2
32.1
17.1
15.0
15.2
1.4
13.6
3.5
10.1
18.2
2,661
2,208
19.6
20.3
2.1
0.6
71.9
FY25E
2Q
23.7
15.1
9.6
33.3
17.7
15.7
18.2
1.6
14.1
3.5
10.6
10.8
2,691
2,303
15.6
19.4
2.1
0.6
72.9
FY24
3QE
24.4
15.0
9.3
33.7
18.2
15.5
7.9
1.7
13.8
3.5
10.3
2.2
2,788
2,373
16.4
19.1
2.1
0.6
72.5
4QE
25.0
13.8
8.9
33.9
19.0
14.9
34.2
1.5
13.4
3.4
10.1
11.0
2,950
2,454
16.8
17.2
1.9
0.5
72.4
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
0.7
69.6
FY25E
96.0
15.7
37.0
132.9
71.9
61.1
18.0
6.2
54.8
13.8
41.0
10.3
2,950
2,454
16.8
17.2
1.9
0.5
72.4
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 (%)
December 2024
13
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
HDFC Bank
CMP: INR1,782 | TP: INR2,050 (+15%)
Expect cost ratios 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
298.4
26.4
106.7
405.1
166.2
238.8
27.2
26.0
212.8
51.1
161.7
35.3
23,791
24,635
24.4
52.5
1.3
0.4
71.2
FY25E
2Q
301.1
10.0
114.8
416.0
168.9
247.1
8.9
27.0
220.1
51.8
168.2
5.3
25,001
24,951
15.1
7.0
1.4
0.4
69.9
3QE
303.4
6.5
117.1
420.5
172.9
247.6
4.7
26.8
220.8
54.3
166.4
1.7
25,873
25,656
16.9
4.9
1.4
0.4
70.2
4QE
310.6
6.8
124.3
434.8
178.0
256.8
-12.3
25.8
231.0
59.5
171.5
3.9
27,439
26,464
15.3
6.5
1.4
0.4
70.3
Buy
EPS CHANGE (%): FY25|FY26: -0.3|-1.3
Margins to remain broadly stable
Guidance for credit growth to be key monitorable
(INR b)
FY24
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
FY25E
1,213.4
11.8
462.9
1,676.3
686.0
990.3
4.9
105.7
884.6
216.7
667.9
9.8
27,439
26,464
15.3
6.5
1.4
0.4
70.3
Net Interest Income
% Change (Y-o-Y)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (Y-o-Y)
Provisions
Profit before Tax
Tax
Net Profit
% Change (Y-o-Y)
Operating Parameters
Deposit
Loan
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
ICICI Bank
CMP: INR1284 | TP: INR1,550 (+21%)
Expect business growth to remain healthy
Margins expected to witness a mild moderation
Quarterly Performance
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
1Q
195.5
7.3
70.0
265.5
105.3
160.2
13.3
13.3
146.9
36.3
110.6
14.6
14,261
12,232
15.1
15.7
2.2
0.4
80.2
FY25
2Q
200.5
9.5
71.8
272.2
105.0
167.2
17.5
12.3
154.9
37.4
117.5
14.5
14,978
12,772
15.7
15.0
2.0
0.4
79.0
FY24
3QE
207.1
10.9
67.9
275.0
107.9
167.1
13.5
15.4
151.7
37.5
114.2
11.2
15,651
13,274
17.5
15.1
2.0
0.4
78.7
4QE
212.1
11.1
69.0
281.1
109.8
171.3
13.9
12.1
159.2
40.7
118.5
10.6
16,304
13,751
15.4
16.1
2.0
0.4
79.3
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
80.3
Buy
EPS CHANGE (%): FY25|FY26: 0.5|0.3
Expect cost ratios to remain elevated
Expect asset quality ratio to be steady
(INR b)
FY25E
815.2
9.7
278.7
1,093.9
428.0
665.9
14.6
53.2
612.7
151.9
460.7
12.7
16,304
13,751
15.4
16.1
2.0
0.4
79.3
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 (%)
E: MOFSL Estimates
December 2024
14
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
IDFC First Bank
CMP: INR64 | TP: INR73 (14%)
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
1Q
46.9
25.4
16.2
63.1
44.3
18.8
25.5
9.9
8.9
2.1
6.8
-11.0
2,097
35.8
2,026
21.0
1.9
0.6
69.4
FY25E
2Q
47.9
21.2
17.3
65.2
45.5
19.6
29.9
17.3
2.3
0.3
2.0
-73.3
2,236
30.6
2,151
20.7
1.9
0.5
75.3
Neutral
EPS CHANGE (%): FY25|FY26: -12.9|-11.0
Asset Quality ratio to deteriorate slightly
Margins movement to be a key monitorable
FY24
3QE
49.6
15.7
17.5
67.1
46.8
20.3
29.8
13.6
6.6
1.6
5.0
-30.1
2,343
28.4
2,258
21.7
2.1
0.6
74.1
4QE
51.6
15.4
18.7
70.3
48.7
21.5
29.4
11.5
10.0
2.5
7.5
3.1
2,495
24.4
2,399
23.3
2.2
0.6
73.8
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
(INR b)
FY25E
196.0
19.1
69.6
265.6
185.4
80.3
28.7
52.4
27.8
6.5
21.3
-28.0
2,495
24.4
2,355
21.0
2.2
0.6
73.8
Net Interest Income
% Change (Y-o-Y)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (Y-o-Y)
Provisions
Profit before Tax
Tax
Net Profit
% Change (Y-o-Y)
Operating Parameters
Deposit (INR b)
Deposit Growth (%)
Loan (INR b)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
E: MOFSL Estimates
IndusInd Bank
CMP: INR969 | TP: INR1,250 (+29%)
Expect business growth to remain moderate
Expect margins to decline further
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
1Q
54.1
11.1
24.4
78.5
39.0
39.5
3.1
10.5
29.0
7.3
21.7
2.2
3,985
3,479
14.8
15.5
2.0
0.6
70.6
FY25E
2Q
53.5
5.3
21.8
75.3
39.3
36.0
-7.9
18.2
17.8
4.5
13.3
-39.5
4,124
3,572
14.7
13.2
2.1
0.6
70.1
3QE
52.8
-0.3
23.3
76.1
40.0
36.0
-10.8
16.8
19.2
4.8
14.4
-37.6
4,239
3,683
14.9
12.6
2.2
0.6
70.6
4QE
54.1
0.6
23.9
78.0
41.2
36.8
-9.7
15.1
21.8
5.4
16.4
-30.3
4,350
3,817
13.1
11.2
2.3
0.7
71.2
Buy
EPS CHANGE (%): FY25|FY26: -10.9|-12.4
Expect asset quality to witness a slight deterioration
Credit costs likely to be elevated
(INR b)
FY24
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
69.5
FY25E
214.5
4.0
93.5
307.9
159.5
148.4
-6.5
60.6
87.8
22.0
65.8
-26.7
4,350
3,817
13.1
11.2
2.3
0.7
71.2
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 (INR b)
Loan (INR b)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
E: MOFSL Estimates
December 2024
15
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
Indian Bank
CMP: INR517 | TP: INR670 (+30%)
Expect cost ratios to remain contained
Expect NIMs to remain largely flat
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
6,215
4,564
6.4
13.6
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: -1.8|-1.8
Earnings growth to remain on track
Expect asset quality ratios to improve
FY25E
2Q
61.9
7.9
24.2
86.2
38.9
47.3
9.9
11.0
36.3
9.2
27.1
36.2
6,931
5,329
8.2
13.2
3.5
0.3
92.5
FY24
3QE
63.4
9.1
21.5
84.9
39.5
45.4
10.8
10.9
34.5
8.7
25.8
21.8
7,181
5,487
9.8
12.1
3.3
0.3
92.0
4QE
64.7
7.6
24.1
88.8
42.6
46.3
7.5
10.8
35.4
9.1
26.4
17.3
7,458
5,669
8.4
10.1
3.1
0.3
91.7
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
251.9
8.2
88.9
340.8
156.8
184.0
9.3
45.4
138.6
35.3
103.3
28.1
7,458
5,669
8.4
10.1
3.1
0.3
91.7
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
61.8
8.3
19.1
80.8
35.8
45.0
8.9
12.6
32.4
8.4
24.0
40.6
6,812
5,208
9.6
14.1
3.8
0.4
90.0
Kotak Mahindra Bank
CMP: INR1,788 | TP: INR2,000 (12%)
Expect cost ratios to remain elevated
Margins to witness a mild moderation
Quarterly Performance
Y/E March
Net Interest Income
% Change (Y-o-Y)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (Y-o-Y)
Provisions
Profit before Tax
Tax
Net Profit
% Change (Y-o-Y)
Exceptional item
PAT including exceptionals
% Change (Y-o-Y)
Deposits (INRb)
Loans (INRb)
Deposit growth (%)
Loan growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
E: MOFSL Estimates
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
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
31.9
23.6
4,010
3,483
23.3
18.5
1.72
0.37
79.1
Neutral
EPS CHANGE (%): FY25|FY26: -0.6|-1.2
Asset quality to witness a mild moderation
Business growth and guidance will be a key monitorable
FY25E
2Q
70.2
11.5
26.8
97.0
46.0
51.0
10.6
6.6
44.4
11.0
33.4
4.8
33.4
4.8
4,615
3,995
15.1
14.7
1.49
0.43
71.4
FY24
3QE
71.4
8.9
28.0
99.4
47.1
52.3
14.6
7.5
44.8
11.0
33.8
12.4
33.8
12.4
4,835
4,124
18.3
14.7
1.56
0.46
71.2
4QE
73.2
5.9
32.4
105.6
48.5
57.1
4.5
6.9
50.2
11.5
38.7
-6.5
38.7
-6.5
5,037
4,295
12.2
14.2
1.58
0.45
71.6
259.9
20.6
102.7
362.7
166.8
195.9
31.9
15.7
180.1
42.3
137.8
26.0
137.8
26.0
4,490
3,761
23.6
17.6
1.39
0.34
75.9
(INR b)
FY25E
283.2
8.9
116.6
399.8
186.8
213.0
8.7
26.8
186.1
45.0
141.1
2.4
27.3
168.4
22.2
5,037
4,295
12.2
14.2
1.58
0.45
71.6
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
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
41.3
18.2
4,490
3,761
23.6
17.6
1.39
0.34
75.9
1Q
68.4
9.8
29.3
97.7
45.2
52.5
6.2
5.8
46.8
11.6
35.2
2.0
27.3
62.5
2.0
4,474
3,900
15.8
18.7
1.39
0.35
74.9
December 2024
16
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
Punjab National Bank
CMP: INR103 | TP: INR120 (+17%)
Expect margins to remain stable
Expect asset quality to improve in 3Q
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
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
104.8
10.2
36.1
140.9
75.0
65.8
10.3
13.1
52.7
20.2
32.5
159.0
14,082
9,840
8.5
13.9
5.0
0.6
88.4
FY25E
2Q
3QE
105.2
107.7
6.0
4.6
45.7
34.4
150.9
142.1
82.4
76.3
68.5
65.8
10.2
4.0
2.9
7.9
65.7
57.9
22.6
21.4
43.0
36.5
145.1
64.0
14,583
10,196
11.3
14.6
4.5
0.5
90.2
14,892
10,412
12.5
13.6
4.0
0.4
90.0
Neutral
EPS CHANGE (%): FY25|FY26: -0.1|-1.5
Opex to remain contained
Business growth/RoA trajectory to remain the key
monitorables
(INRb)
FY24
4QE
109.8
5.9
44.4
154.2
78.9
75.3
17.4
9.1
66.2
21.8
44.3
47.3
15,108
10,550
10.3
12.9
3.7
0.4
89.7
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
160.6
588.0
312.5
275.5
10.5
33.1
242.4
86.1
156.3
89.6
15,108
10,550
10.3
12.9
3.7
0.4
89.7
RBL Bank
CMP: INR158 | TP: INR170 (+8%)
Expect earnings to decline sharply amid higher LLP
Cost ratios likely to remain elevated
Quarterly Performance
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
1Q
17.0
19.5
8.1
25.1
16.5
8.6
32.7
3.7
4.9
1.2
3.7
29.0
1,013.5
867.0
18.4
18.6
2.7
0.7
73.1
FY25E
2Q
3QE
16.1
15.5
9.5
0.6
9.3
11.0
25.4
26.6
16.3
16.7
9.1
9.9
24.5
29.9
6.2
9.2
2.9
0.7
0.7
0.0
2.2
0.7
-24.3
-70.0
1,079.6
878.8
20.2
15.1
2.9
0.8
73.0
1,104.9
900.8
19.1
12.7
3.2
0.9
72.1
4QE
16.1
0.5
9.6
25.7
17.1
8.7
-2.3
7.2
1.4
0.3
1.1
-69.0
1,155.0
935.6
11.6
11.4
3.6
1.1
71.5
Neutral
EPS CHANGE (%): FY25|FY26: -24.4 |-21.0
Expect asset quality ratios to remain under pressure
Margin and credit cost likely to remain under pressure
(INR b)
FY24
60.4
20.9
30.4
90.9
60.6
30.3
37.6
17.7
12.6
0.9
11.7
32.3
1,034.9
839.9
21.9
19.6
2.7
0.7
72.7
FY25E
64.8
7.2
38.0
102.8
66.5
36.3
19.7
26.3
10.0
2.3
7.7
-33.8
1,155.0
935.6
11.6
11.4
3.6
1.1
71.5
Net Interest Income
% Change (Y-o-Y)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (Y-o-Y)
Provisions
Profit before Tax
Tax
Net Profit
% Change (Y-o-Y)
Operating Parameters
Deposit
Loan
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
E: MOFSL Estimates
December 2024
17
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
State Bank of India
CMP: INR793 | TP: INR1000 (+26%)
Expect slightly elevated provisions in 3Q
Expect cost ratios to be slightly higher
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
2.76
0.71
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
2.55
0.64
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
2.42
0.64
74.2
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
2.24
0.57
75.0
1Q
411.3
5.7
111.6
522.9
258.4
264.5
4.6
34.5
0.0
230.0
59.6
170.4
0.9
170.4
49.0
37.5
8.2
15.9
2.21
0.57
74.4
FY25E
2Q
416.2
5.4
152.7
568.9
276.0
292.9
50.9
45.1
0.0
247.9
64.6
183.3
27.9
183.3
51.2
38.6
9.1
15.3
2.13
0.53
75.7
3QE
422.8
6.2
130.8
553.5
283.0
270.5
33.0
51.6
0.0
218.8
56.5
162.4
77.2
162.4
52.9
40.6
11.2
15.4
2.04
0.50
75.6
4QE
434.1
4.2
173.4
607.5
305.8
301.7
5.0
46.9
0.0
254.8
60.1
194.8
-5.9
194.8
54.4
42.0
10.7
13.4
2.03
0.50
75.9
Buy
EPS CHANGE (%): FY25|FY26: -0.2|-0.1
Asset quality expected to remain contained
Margin expected to stay largely flat
(INR b)
FY24
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
2.24
0.57
74.8
FY25E
1,684.3
5.4
568.5
2,252.8
1,123.2
1,129.7
30.3
178.1
0.0
951.6
240.7
710.8
31.7
54.4
42.0
10.7
13.4
2.03
0.50
75.9
Union Bank of India
CMP: INR123 | TP: INR140 (+14%)
Expect cost ratios to remain under control
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
91.3
9.9
37.0
128.2
56.0
72.2
9.8
17.7
54.5
19.4
35.1
90.0
11,376
8,036
9.0
10.5
6.4
1.3
80.7
3Q
91.7
6.3
37.7
129.4
56.6
72.8
9.9
17.5
55.3
19.4
35.9
59.9
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
94.1
6.5
45.1
139.2
61.4
77.9
8.4
27.6
50.3
13.5
36.8
13.7
12,242
8,787
8.5
14.0
4.5
0.9
80.9
FY25E
2Q
3QE
90.5
91.8
-0.9
0.2
53.3
41.6
143.8
133.4
62.6
63.4
81.1
70.0
12.4
-3.8
17.1
20.5
64.0
49.5
16.8
13.1
47.2
36.4
34.4
1.4
12,419
8,971
9.2
11.6
4.4
1.0
78.4
12,783
9,205
9.0
6.8
4.1
0.9
78.0
4QE
93.3
-1.1
44.9
138.3
66.7
71.6
9.6
20.3
51.2
13.3
37.9
14.5
13,229
9,596
8.3
10.2
3.9
0.9
76.7
Buy
EPS CHANGE (%): FY25|FY26: 1.7|-3.7
Margins anticipated to remain broadly stable
Expect 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
369.7
1.1
184.9
554.7
254.1
300.6
6.6
85.6
215.0
56.8
158.3
16.0
13,229
9,596
8.3
10.2
3.9
0.9
76.7
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)
Loan (INR b)
Deposit Growth (%)
Loan Growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
E: MOFSL Estimates
December 2024
18
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
SBI Cards and Payment Services
CMP: INR678 | TP: INR750 (+11%)
Cost ratios expected to remain stable in 3Q
Spending growth to see a marginal revival
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
418.1
30.3
329.6
2.4
63.8
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
435.6
19.3
340.8
2.4
64.1
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
471.6
26.3
380.1
2.6
64.1
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
490.8
24.7
398.9
2.8
64.9
1Q
14.8
19.7
22.4
37.2
18.2
19.0
25.4
11.0
8.0
2.0
5.9
0.2
508.1
21.5
408.7
3.1
64.4
FY25E
2Q
15.0
15.8
22.7
37.7
20.1
17.6
13.3
12.1
5.5
1.4
4.0
-32.9
536.0
23.0
432.2
3.3
64.4
Neutral
EPS CHANGE (%): FY25|FY26: 3.2|4.3
Asset quality ratios likely to deteriorate further
Revolver mix/margin outlook are key monitorables
FY24
3QE
15.7
13.0
25.7
41.3
23.2
18.2
12.1
12.4
5.8
1.5
4.3
-21.5
557.6
18.2
451.4
3.4
65.1
4QE
16.2
14.7
26.2
42.5
21.2
21.3
16.2
12.3
9.0
2.3
6.8
2.0
581.1
18.4
469.9
3.4
67.9
51.5
17.0
97.4
148.9
83.7
65.2
25.6
32.9
32.3
8.2
24.1
6.6
490.8
24.7
398.9
2.8
64.9
(INR b)
FY25E
61.7
19.8
97.0
158.7
82.6
76.0
16.6
47.8
28.3
7.2
21.1
-12.5
581.1
18.4
469.9
3.4
67.9
Net Interest Income
% Change (Y-o-Y)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (Y-o-Y)
Provisions
Profit before Tax
Tax
Net Profit
% Change (Y-o-Y)
Operating Parameters
Loan (INRb)
Loan Growth (%)
Borrowings (INRb)
Asset Quality
Gross NPA (%)
PCR (%)
Paytm
CMP: INR 987 | TP: INR950 (-4%)
Expect operating profitability to improve
Expect disbursements and GMV to increase sequentially
Quarterly Performance
1Q
5.5
8.4
5.2
19.2
42.4
4.1
22.0
23.4
39.3
10.4
13.0
12.2
0.8
-2.9
-3.6
-44.5
-3.6
4.1
148.5
36.8
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
12.5
22.4
25.2
28.5
31.6
38.2
10.9
13.3
14.3
15.2
12.7
13.0
1.5
2.2
-2.3
-1.6
-2.9
-2.2
-49.9
-43.9
-2.9
-2.2
4.5
162.1
41.5
56.6
6.1
-9.2
5.1
155.4
47.4
53.3
7.7
-5.5
4Q
4.4
11.2
3.0
18.6
-3.0
4.0
0.5
22.7
-2.9
9.8
12.9
11.9
1.0
-2.2
-5.5
227.1
-3.2
4.7
58.0
29.6
56.8
4.5
-9.9
1Q
0.8
8.0
2.8
11.6
-39.3
3.2
-20.7
15.0
-35.9
7.5
7.5
13.0
-5.5
-7.9
-8.4
134.7
-8.4
4.3
50.1
5.2
50.3
-36.4
-52.8
FY25E
2Q
3QE
0.9
1.1
8.6
9.2
3.8
4.5
13.2
14.8
-36.2
-35.2
3.0
2.8
-28.8
-45.4
16.6
18.0
-34.1
-36.9
7.7
7.8
8.9
10.2
10.8
11.0
-1.9
-0.8
-4.0
-3.5
-4.2
-3.6
45.5
61.9
9.3
-3.6
4.5
52.8
-0.7
53.9
-11.2
-24.3
4.9
60.2
-3.6
56.6
-4.4
-19.2
Neutral
Revenue from Ops. CHANGE (%): FY25|FY26: -0.6|4.0
Expect total revenue growth to improve
Traction on new business verticals to be a key monitorable
FY24
4QE
3.6
10.8
4.9
19.3
4.0
3.0
-25.1
22.7
0.1
8.2
14.5
11.2
3.3
1.1
1.1
-120.9
1.1
5.2
72.6
10.9
63.7
14.3
4.9
21.7
39.6
20.0
81.3
27.4
17.4
14.4
99.8
24.9
44.4
55.4
49.8
5.6
-9.1
-14.1
-20.6
(INR b)
FY25E
6.4
36.6
16.0
59.0
-27.4
12.0
-31.0
72.3
-27.5
31.2
41.1
46.0
-4.9
-14.3
-28.4
101.4
Payment Services to Consumers
Payment Services to Merchants
Financial Services and Others
Payment and Financial Services
% Change (Y-o-Y)
Commerce and Cloud Services
% Change (Y-o-Y)
Revenue from Operations
% Change (Y-o-Y)
Direct Expenses
Contribution Profit
Indirect Expenses
Adjusted EBITDA
EBITDA
PAT
% Change (Y-o-Y)
Adj. PAT
Operating Parameters
GMV (INRt)
Disbursements (INR b)
GMV Growth (%)
Profitability
Contribution Margin (%)
Adjusted EBITDA Margin (%)
EBITDA Margin (%)
18.3
523.7
38.4
55.5
5.6
-9.1
18.8
235.7
3.0
56.9
-6.7
-19.8
Investment in securities market are subject to market risks. Read all the related documents carefully before investing
December 2024
19
 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
NOTES
December 2024
20
 Motilal Oswal Financial Services
December 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 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 Ltd. are available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
MOFSL, it’s associates, Research Analyst or their relatives may have any financial interest in the subject company. MOFSL and/or its associates and/or Research Analyst or their relatives may have 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.
MOFSL
and its associate company(ies), their directors and Research Analyst and their relatives may have any other potential conflict of interests at the time of publication of the research report or at the time of public
appearance, 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.
In the past 12 months, MOFSL or any of its associates may have:
a)
received any compensation/other benefits from the subject company of this report
b)
managed or co-managed public offering of securities from subject company of this research report,
c)
received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
d)
received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
MOFSL and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
Subject Company may have been a client of MOFSL or its associates during twelve months preceding the date of distribution of the research report.
Research Analyst may have served as director/officer/employee in the subject company.
MOFSL and research analyst may engage in market making activity for the subject company.
MOFSL and its associate company(ies), and Research Analyst and their relatives from time to time may have:
a) 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.
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.
To enhance transparency, MOFSL has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the 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.
Terms & Conditions:
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.
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.
Disclosure of Interest Statement
Companies where there is interest
Analyst ownership of the stock
No
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.
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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 Financial Services Limited
(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 amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under
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 Motilal Oswal Financial Services
December 2024 Results Preview | Sector: Financials
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 agreement 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.
For Singapore
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
financial adviser in Singapore.This report is distributed solely to persons who (a) qualify as “institutional investors” as defined in section 4A(1)(c) of the Securities and Futures Act of Singapore (“SFA”) or (b) are
considered "accredited investors" as defined in section 2(1) of the Financial Advisers Regulations of Singapore read with section 4A(1)(a) of the SFA. Accordingly, if a recipient is neither an “institutional 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
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 i nvestment. 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 suitable for all investors.
No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this document. The Disclosures 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 a separate, distinct and independent of
each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already available in publicly accessible media or
developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed therein. This document is being supplied to you
solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed
or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use
would be contrary to law, regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all
jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors,
employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with
the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and
agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs,
damages,
expenses that may be suffered by the person accessing this information due to any errors and delays.
This report is meant for the clients of Motilal Oswal only.
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 - 71934200 / 71934263; www.motilaloswal.com.
Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 71881000. Details of Compliance Officer: Neeraj Agarwal, Email
Id: na@motilaloswal.com, Contact No.:022-40548085.
Grievance Redressal Cell:
Contact Person
Ms. Hemangi Date
Ms. Kumud Upadhyay
Mr. Ajay Menon
Contact No.
022 40548000 / 022 67490600
022 40548082
022 40548083
Email ID
query@motilaloswal.com
servicehead@motilaloswal.com
am@motilaloswal.com
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
grievances@motilaloswal.com, for DP to dpgrievances@motilaloswal.com.
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