Sector Update | 18 March 2025

Financials: Banks

MOFSL BFSI Picks: Sector performance to remain divergent

Selective on Private Banks; NBFCs and Non-lending Financials better positioned

MOFSL

BFSI picks

FY25 has been a challenging year for the BFSI sector, with the Bank Nifty and Nifty

Financial index posting returns of 2.6% and 12.1%, respectively, compared to 0.8% returns

from the Nifty 50 index. Despite these headwinds, several stocks have delivered healthy

double-digit returns, such as HDFCB (18%), ICICI (16%), KMB (12%), and FB (18%). While

FY26 may begin on a softer note, with earnings expected to continue decelerating in 1H,

we believe that the visibility of earnings recovery for banks, margin tailwinds for NBFCs as

the sector pivots back to growth, and a gradual recovery in Capital Markets

—

supported by

valuations

—

will provide attractive investment opportunities over the year. We have

analyzed nearly 70 BFSI companies in our coverage and summarized our thoughts on

various BFSI segments and preferred ideas below.

Segment

MOFSL

BFSI picks

ICICI Bank

HDFCB

KMB

Federal bank

SBIN

AU SFB

Shriram Finance

PNBHF

Home First

L&T Finance

HDFC Life

ICICI Lombard

HDFC AMC

Angelone

Nuvama

CAMS

Banks: Earnings growth to bottom out in FY26 and recover thereafter



Private banks

PSU Bank

SFBs

Vehicle Financiers

Housing Finance

Diversified

Life insurance

General insurance

AMCs

Broking and

exchanges

Wealth management

Intermediaries





Banking system credit growth has sharply decelerated to 11% YoY vs an average

of 16% over FY23-24. Challenging macro conditions and slower GDP growth may

hinder credit growth recovery in FY26. We currently factor in credit growth to

sustain at 12.5% in FY26, with competition for deposits likely to remain

elevated.

The reversal in the repo rate cycle and limited room for banks to cut TD rates

will keep margins in check. Elevated slippages and asset quality stress,

particularly among mid-sized private banks with exposure to unsecured retail

and MFI segments, are expected to drive higher provisioning expenses.

Additionally, continued normalization in credit costs in secured segments will

drive further earnings moderation in the banking sector.

We, thus, estimate that earnings growth for our coverage banking sector will

moderate to 8.4% YoY in FY26, before recovering to 14.5% YoY, as margins

recover following a repricing of funding cost.

Nifty Financial Index outperforms Nifty 50; Bank Nifty moves in line







During FY25YTD,

Nifty Financial

outperformed Nifty 50 by 11%, while Nifty Bank

performed broadly in line with a modest 1.8% outperformance. The divergence

in banking stock performance continued, with private banks delivering mixed

returns, while PSU banks significantly underperformed, as evidenced by a 17%

decline in the PSU Bank index during FY25YTD.

Interestingly, while the

Nifty Private Bank Index

delivered a modest 2.7% return

during FY25YTD, several large cap banks such as HDFCB, ICICIBC, and Kotak Bank

delivered solid returns of 18%, 16%, and 12%, respectively. Mid-sized PVBs,

including Federal Bank, CUB, and KVB, led the pack with returns of 18%, 13%,

and 8%, respectively. On the other hand, IIB, RBK, and IDFCB were the biggest

underperformers, with losses of 56%, 36%, and 30%, respectively.

The

NBFC sector

has performed well, supported by the reversal in the rate cycle

and indications from select NBFCs that credit costs have either peaked or are

nearing their peak. Further, the reduction in the repo rate, translating into a

positive NIM outlook for the sector (mainly vehicle financiers), will continue to

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.

Financials: Banks



support sector performance. Cholamandalam, Shriram Finance, Muthoot

Finance, and BAF have all delivered returns ranging from 18% to 55% over

FY25YTD.

The non-lending financial sector

has experienced a tale of two halves, with the

first half performing strongly. However, a correction in equity markets and the

implementation of new regulations led to a sharp correction across many capital

market stocks. While premium growth for private life insurance companies

remained healthy (YTD Individual WRP growth of 17%), an adverse product mix

(higher ULIP share) and regulatory concerns kept stock performance in check.

Both general insurers under our coverage, ICICI Lombard (1.5% return) and Star

Health (36% decline) underperformed broader markets due to weak growth.

Business momentum stood weak for most private banks, driven by an elevated

CD ratio and heightened competition for liabilities. Unsecured loan growth has

moderated sharply amid stress in MFI, PL, and CC, further exerting pressure on

portfolio growth and overall lending yields. Several banks, including IIB, RBK,

and AUBANK, have revised down their growth guidance, while larger banks may

report muted growth due to high CD ratios.

Margins continued to decline amid rising funding costs and a moderation in the

CASA mix. NIMs are likely to remain under pressure in 1HFY26 as the reversal in

the rate cycle brings down lending yields. However, a mild recovery could occur

from 2HFY26 onwards as funding costs begin to moderate.

Delinquencies in unsecured segments, particularly MFI and credit cards,

remained elevated, leading to increased provisioning for certain banks.

However, larger private banks with more diversified and secured portfolios

continue to fare better and are well-positioned to navigate the current

challenging environment.

We expect PVBs to report an earnings CAGR of ~14% over FY25-27, with growth

bottoming out at ~11% in FY26.

Our preferred Buys include

ICICI, HDFCB, KMB

(upgraded after five years during

3QFY25 results),

FB, and AUBANK,

while we maintain a Neutral stance on AXSB

(downgraded in Jan’24), RBL Bank, IDFC First Bank, and Bandhan Bank.

RoA for PSBs has largely matured, and we expect earnings growth to lag loan

growth over FY25-27. We, thus, estimate PSB’s earnings growth to moderate to

an 8% CAGR over FY25-27 vs 38% CAGR over FY22-25.

Notwithstanding the high MCLR-linked book, we expect margin bias for PSBs to

remain negative due to muted loan growth, higher CoF, and the inability to pass

on higher MCLR rates to customers.

Slippages have remained under control for most banks, reflecting no imminent

signs of stress. However, the normalization of the slippage run rate, along with

ECL provisioning requirements, will be closely monitored to better assess the

credit cost outlook.

The PSU banking space

has underperformed despite healthy asset quality and

earnings trajectory, as the profitability growth outlook has weakened

Private banks: Stock performance remains divergent











PSU banks: Turning selective on modest earnings outlook









18 March 2025

2

Financials: Banks

considerably compared to the trend in prior years. We, thus, remain selective on

the sector and maintain SBIN as our preferred pick.

SFBs: Near-term headwinds remain; growth to accelerate from 2H





Small Finance Banks (SFBs)

faced significant challenges, mainly due to elevated

stress in MFI and unsecured loans. We expect stress in MFI to persist in the near

term and remain watchful of the impact of new guard rails.

Margins have witnessed some moderation as funding costs remain elevated and

the mix of high-yielding MFI segment has declined. We continue to favor

AUBANK.

SBICARD:

SBICARD continues to report elevated stress, though management has

indicated that credit costs have peaked and asset quality stress is likely to ease

moving forward. Overall spending has moderated, driven by a sharp decline in

corporate spends, and we expect overall spend growth to remain modest at

~15% during FY26. The moderation in funding costs should help ease NIM

pressures, although the shallow rate cut cycle will help in a limited manner The

stock trades at 24x Sep’26E EPS, which is closer to our target multiple.

PAYTM:

The company has successfully navigated regulatory challenges and

remains focused on expanding its merchant base and scaling up loan

distribution. Strong cost control and growth in financial services are expected to

drive profitability by FY27, with an estimated PAT of INR12.1b. However, we

remain watchful of the challenging macro environment, adverse regulatory

developments, and near-term pressure on the UPI market share.

We prefer PVBs over PSBs,

as we believe the profitability of PSBs has peaked,

and there are limited triggers for further re-rating. In contrast, PVBs are better

positioned for potential outperformance, supported by reasonable valuations,

robust balance sheets, and an improving earnings trajectory from 2HFY26

onwards.

The valuation gap between PVBs and PSBs has narrowed, making PVBs more

attractive. The normalization of credit costs in secured segments, along with the

implementation of ECL guidelines, could lead to slightly higher credit costs for

PSBs, further impacting earnings.

During FY22-25, PSBs delivered a 38% earnings CAGR, eclipsing the 24%

earnings CAGR for PVBs. However, we estimate this trend to reverse over

FY25-27, with PVBs’ earnings growth outpacing that of PSBs, further

supporting our preference for PVBs at this juncture.

In FY25-YTD, NBFCs have posted a mixed performance amid a challenging

macro-environment, with an overall 16% YoY growth in AUM. Vehicle financiers

in particular have exhibited strong growth (22% YoY), though this is expected to

moderate by the end of FY25 and into FY26. Large HFCs grew at a modest 7%

YoY, while affordable and small-ticket HFCs saw a 14% YoY increase.

However, the sector is facing challenges, such as deteriorating asset quality due

to customer overleveraging (MFI segment), macroeconomic factors, and sector-

specific issues such as weak demand for CVs and limited supply in used vehicles.

3

Payments & cards: Maintain Neutral on both SBICARD & PAYTM





Prefer PVBs over PSBs amid cheap valuations and 2H earnings recovery







NBFCs: Turn in rate cycle to aid gradual recovery; pivoting back to growth





18 March 2025

Financials: Banks



However, early signs of recovery are visible in the MFI segment, with improved

collection efficiencies. NBFCs are expected to pivot back to growth after the

current period of moderation, supported by repo rate cuts and an easing of the

regulatory stance.

The MFI sector may continue to face challenges in the near term before

recovery begins, which is expected by 2QFY26, as we remain watchful of the

impact of new MFIN 2.0 guardrails. Our outlook for the NBFC sector is cautiously

optimistic, with regulatory easing and rising disposable income potentially

boosting demand and loan growth in the medium term.

Capital market stocks delivered stellar returns in 1H, backed by robust trends

across key parameters such as demat account additions, SIP inflows, F&O ADTO

surge, and strong markets leading to MTM gains.

However, 2H saw a complete reversal in trends due to: 1) new regulations

implemented for the F&O segment and 2) weak market sentiments bringing

down MTM gains as well as new investor additions. Nevertheless, we remain

highly optimistic about the sector’s long-term prospects, given the stark under-

penetration and the improving trend of financialization of savings.

Despite a sharp correction (22%-46%) in coverage stocks from their respective

52-week highs, stocks such as ABSL AMC/BSE/MCX/360 One/Prudent are still up

28%/46%/39%/23%/57%, respectively, indicating a strong re-rating in these

names.

For asset management companies, despite the market correction, SIP inflows

(INR260b in Feb’25) remained strong. Additionally, there has been no sharp

pickup in redemptions, indicating resilience in customer behavior for long-term

savings through the MF route.

Going forward, we will be watchful about regulatory actions on entity-wise

limits in F&O (consultation paper was released on Feb’25), the impact of shift in

NSE’s expiry day from Thursday to Monday, and consolidation in markets to

gauge the MTM hit on companies.

Private life insurance companies have reported YTD Individual WRP growth of

17%, despite the implementation of surrender charges regulation from Oct’24.

However, the product mix has turned adverse, with the share of non-par and

credit life declining, while that of ULIPs increasing.

Going forward, the key monitorable will be any regulatory move on the

bancassurance channel, open architecture for the agency channel, and the

implementation of the new Insurance Act. In the near term, a slowdown of

ULIPs (owing to market correction) and a pickup in the non-par category (cut in

interest rates) will be positive for VNB margins.

The general insurance industry reported a slowdown in growth since Oct’24,

primarily due to the implementation of 1/n reporting of GWP for long-term

policies. Additionally, slow infrastructure investments, weak auto sales trends,

and aggression in group products to meet EOM regulations have restricted

growth.

While infrastructure spending is expected to pick up, motor sales are expected

to remain weak in FY26. The 1/n regulation will continue to impact reported

Capital market: Hit by speed bumps; structural story intact











Insurance: Uncertainty on regulations impacting outlook









18 March 2025

4

Financials: Banks

growth in 1H, but it should unwind, leading to stronger growth in 2H.

Improvement in pricing for the fire and health segments will support

profitability improvement.

MOFSL BFSI picks: Remain selective in our approach; NBFCs and Non-

lending Financials better positioned









Banks:

We continue to prefer large cap banks, as their valuations appear

reasonable given the earnings outlook. These banks have demonstrated a better

ability to navigate macro uncertainties and possess stronger balance sheets. We

estimate that PVB earnings will grow at ~11%/17% over FY26/27, while PSB

earnings will grow at 6%/11% over the same period. We, thus, prefer PVBs over

PSBs, given reasonable valuations and a healthy growth outlook.

ICICIBC,

HDFCB, SBIN, and KMB

are our top large cap picks. In mid-size banks, we prefer

FB and AUBANK.

NBFCs:

Vehicle finance is expected to benefit from rate cuts and will likely

continue to perform well, in our opinion. We remain moderately OW on PNB HF,

as its product mix change will offset margin compression due to rate cuts, and

the company has strong visibility on loan growth. We are UW on PFC and REC

due to concerns about loan growth and renewable book asset quality.

SHFL,

HomeFirst, PNBHF, and LTFH are our preferred picks among NBFCs.

Life & General Insurance:

We like HDFC Life for its ability to deliver steady

growth and margins, with valuations appearing reasonable. Among general

insurers, we prefer ICICI Lombard due to its improving business mix, strong cost

control, and ability to deliver steady RoEs.

Capital Markets:

We prefer HDFC AMC as its fund performance continues to

stand out, even amid the market correction. We also like NUVAMA in the wealth

management space, given our expectation of sustained profitability

improvement in its wealth management business. CAMs remains our preferred

pick among intermediaries, while we like ANGELONE in the broking space.

Exhibit 1: MOFSL BFSI picks

–

Continue to follow a stock-specific approach as banking

earnings growth bottoms out in FY26E

MOFSL BFSI picks

ICICI Bank

HDFCB

KMB

Federal bank

SBIN

AU SFB

Shriram Finance

Home First

L&T Finance

PNBHF

HDFC Life

ICICI Lombard

HDFC AMC

Angelone

Nuvama

CAMS

Segment

Private Bank

Private Bank

Private Bank

Private Bank

PSU Bank

Small Finance banks

Vehicle Financiers

Affordable Housing Finance

Diversified

Housing Finance

Life insurance

General insurance

AMCs

Broking and exchanges

Wealth management

Intermediaries

Source: MOFSL

18 March 2025

5

Financials: Banks

Exhibit 2: Nifty Financial weight composition: We remain OW on NBFCs and Non-lending Financials over Banks

Other

Housing NBFC

Finance 13%

1%

Vehicle Financiers…

Insurance

5%

PSU Banks

7%

Private Banks

68%

Others

2%

Nifty Financial weights

Exhibit 3:

BFSI market cap surged ~50x over the last two decades, expanding from INR1.8t in 2005 to INR82t in Mar’25,

reflecting a ~21% CAGR

Banks

NBFCs

Insurance

Capital market

Fintechs

82t

1,863

3,869

9,725

19,330

23t

14t

1.58t

-

-

14 258

2005

1,493

-

-

48 1,803

5,690

2010

6.74t

115

57

4,644

11,502

2015

-

581

2,638

882

6,929

46,718

14,954

2020

Mar'25

Source: Bloomberg, MOFSL

Exhibit 4: Nifty Financials weight – 11

th

March’25

Companies

Banks

HDFC Bank Ltd

ICICI Bank Ltd

Kotak Mahindra Bank Ltd

Axis Bank Ltd

State Bank of India

NBFCs

BAJAJ GROUP

Bajaj Finance

Bajaj Finserv

Cholamandalam

Shriram Finance

MUTHOOT

Power Finance

REC

LIC housing Finance

INSURANCE

HDFC Life

IPRU

SBI Life

ICICI LOMBARD

Capital market & Others

SBICARD

HDFC AMC

MCX

TOTAL

Segments

Private Banks

Private Banks

Private Banks

Private Banks

PSU Banks

Nifty Financials weights

(11-Mar-25)

74.9%

31%

21%

8%

8%

7%

17.4%

9.3%

6.5%

2.8%

1.7%

2.4%

0.6%

1.6%

1.4%

0.4%

5.3%

1.8%

0.6%

1.7%

1.1%

2.4%

0.7%

1.1%

0.7%

100.0%

Other NBFC

Other NBFC

Vehicle Financiers

Vehicle Financiers

Other NBFC

Other NBFC

Other NBFC

Housing Finance

Insurance

Insurance

Insurance

Insurance

Others

Others

Others

18 March 2025

6

Financials: Banks

Exhibit 5: MOFSL report card

What went right

Large Cap Banks

ICICIBC

Remarks



ICICIBC has been our top pick over the past

few years.

Not much credit to claim here

and will thus keep it short. The bank’s

performance amid the current challenging

environment reminds us of the famous

proverb, “When the going gets tough, the

tough get going!”

We downgraded AXSB

in Jan’24 and since

then, it has underperformed ICICIBC by

~36%.

We

upgraded KMB in Jan’25

after

maintaining a Neutral stance for almost five

years as we estimate the bank to deliver

better loan growth vs peers. RoE differential

has also narrowed with KMB holding steady,

while valuations appear more reasonable.

Federal Bank

has been one of our preferred

buys in the mid-sized bank sector. While the

roadmap under the leadership of the new

CEO appears aggressive, Mr. Manian’s

banking expertise is expected to drive

strategic improvements at the bank.

We downgraded IDFCFB, BANDHAN, and RBL

Bank in the previous years as we continued

to follow a stock-specific approach in our

sector allocation.

After being outrightly bullish on PSU Banks

over FY22-24, with three back-to-back sector

notes, we have turned more selective on the

sector. We prefer SBIN among large caps and

Indian Banks among mid-size banks as our

preferred Buys.

Outlook ahead



ICICIBC is positioned to deliver superior performance,

supported by strong loan growth, robust asset quality,

and industry-leading return ratios.

It remains our

preferred Buy.

AXSB





KMB





While valuations now appear reasonable, we remain

watchful on the bank’s ability to deliver growth (given

stretched CD ratios) and maintain profitability (RoE has

declined 200bp over the past year).

With the ban now lifted, KMB is well-positioned for

business growth, and a pickup in consumer business

will help limit margin decline. We estimate a healthy

16% loan CAGR over the next two years, with RoA

sustaining at ~2.2%. Reiterate Buy.

We believe that FB is well-placed to deliver strong

earnings growth, driven by steady business expansion

and resilient margins (aided by an improved asset mix

and liability profile). The bank is on course to deliver

sustained growth and enhanced profitability, under the

new leadership.

We remain watchful of the MFI cycle and believe that

while the downside is limited, clarity on earnings and

growth recovery in the coming quarter will be critical

for stock performance. Reiterate Buy.

SBIN is well-positioned to deliver healthy growth,

bolstered by its comfortable CD ratio and robust asset

quality.

We recently upgraded PNB, as the twin levers of credit

cost and CD ratio are expected to continue driving

earnings. At the same time, we have downgraded BOB

in the 3QFY25 results.

We expect SHFL to deliver a PAT CAGR of ~19% over

FY24-27E and RoA/RoE of 3.4%/17% in FY27E. SHFL’s

valuations have already re-rated from 1.2x to 1.5x 1-

year forward P/BV over the last 12-15 months.

We see scope for further re-rating if the company is

able to sustain its execution on AUM growth, margins,

and credit costs.

We expect PNBHF to post an 18% CAGR in its loan book

and a 23% CAGR in PAT over FY24-27, with an RoA/RoE

of 2.6%/14% by FY27.

With favorable risk-reward, a potential re-rating in

valuation multiples is expected as the supply overhang

from private equity investors is resolved in the next

three months.

The revised commission structure, following

discussions, is expected to have only a 20-30bp impact

on VNB margins due to surrender charge regulations.

Management has indicated that margins will remain

stable or slightly improve, driven by stronger growth in

4Q and no deterioration in the product mix.

Federal Bank





IDFCF, BANDHAN, RBL





SBIN







NBFCs

Shriram Finance





PNB Housing



SHFL is our top pick for CY25.

The company

is yet to fully capitalize on its expanded

distribution network from the merger,

enabling a broader product offering.

By leveraging cross-selling opportunities, the

company is improving its operating metrics

and laying a strong foundation for

sustainable growth.

PNB Housing

presents a favorable risk-

reward profile for long-term investors,

poised for transformation over the next

three years. The company is well-positioned

to navigate near-term NIM challenges and

offset them through an improved product

mix.









Capital Market and Insurance

HDFCLIFE



In May 2024,

we upgraded HDFC Life

to Buy,

as the company aims to sustain a well-

balanced product portfolio while expanding

its market presence through geographical

growth and customer acquisition.



Persistency rates have consistently improved

across segments, supporting steady renewal

premium growth.

MCX



We upgraded MCX to BUY in Apr’24 at a

CMP of INR3,732, delivering an 85% return

until our downgrade to Neutral in Dec’24.







Going forward, the outlook is hinged on regulatory

approval for the launch of new products, the

sustenance of premium to notional turnover, and

18 March 2025

7

Financials: Banks

Exhibit 5: MOFSL report card

What went right

360 ONE

Remarks

Since then, the stock has corrected 28%.



Despite the recent correction, 360 One has

delivered a 23% return since Apr’25, as

transaction revenues and inflows remained

strong in 9MFY25.

Outlook ahead

increased adoption among retail/FPIs.



The recent acquisition of B&K and market correction

have impacted the stock price in the past couple of

months. However, we remain positive on the name,

given favorable macro trends such as intergenerational

wealth transfer, increasing HNI/UHNI base, and the

adoption of tech in the affluent segment.

Source: MOFSL, Company

What went wrong

Banks

Indusind Bank

Reasons



Our Buy call on IIB has not played out as expected, as

challenges for the bank continue to persist. The latest

disclosure on accounting discrepancy, along with

management uncertainty, remains a key overhang.

The bank’s operating performance was impacted by

elevated slippages in the MFI and cards business, along

with an overall economic slowdown. As a result, the

bank reduced its growth guidance to ~20%.

Outlook ahead



We recently downgraded the stock and

expect near-term uncertainties to persist.

AUBANK





We continue to believe that despite near-

term MFI stress, AUBANK remains a

compounding story with the potential to

deliver robust growth and RoA expansion

over the next 2-3 years.

We acknowledge that MUTH’s execution

has been extraordinary and could remain

so for the next six months. However, at

current rich valuations, and considering

the potential for deep cyclicality in gold

loan growth, we continue to maintain our

Neutral stance on MUTH.

For a sustainable recovery in the stock

price growth, profitability must make a

significant comeback. The company is

investing in new growth channels and has

taken pricing actions to improve

profitability.

Source: MOFSL, Company

NBFCs

Muthoot Finance



Our Neutral call on MUTH has been incorrect in

hindsight, given that the stock has been up >70% over

the last one year. However, a large part of this was

driven by the strong gold loan growth, which

benefitted from ~35% increase in gold prices over the

last 12 months.



Non-Lending Financials

Star Health



Our Buy call on Star Health has not performed well in

the current fiscal due to weaker-than-expected

premium growth and higher-than-expected

loss/combined ratios. Additionally, the recent change

in GWP reporting to 1/n for long-term plans has

impacted the reported premium growth numbers.



18 March 2025

8

Financials: Banks

Exhibit 6: Price performance across BFSI stocks

Company Name

Nifty 50

Nifty BANK

Nifty PSU Bank

Nifty Private Bank

Nifty Financials

Private Banks

HDFC Bank Ltd

Federal Bank Ltd

ICICI Bank Ltd

City Union Bank Ltd

Kotak Mahindra Bank Ltd

Karur Vysya Bank Ltd

Axis Bank Ltd

IDBI Bank Ltd

DCB Bank Ltd

South Indian Bank Ltd

Tamilnad Mercantile Bank Ltd

CSB Bank Ltd

Bandhan Bank Ltd

Karnataka Bank Ltd

IDFC First Bank Ltd

Yes Bank Ltd

Dhanlaxmi Bank Ltd

RBL Bank Ltd

IndusInd Bank Ltd

PSU Banks

State Bank of India

Indian Bank

Bank of Baroda

Union Bank of India

Bank of Maharashtra

Canara Bank

Punjab National Bank

Jammu and Kashmir Bank Ltd

Bank of India

Central Bank of India

Indian Overseas Bank

UCO Bank

Punjab & Sind Bank

Small Finance Banks

Jana SFB

AU Small Finance Bank Ltd

Ujjivan Small Finance Bank Ltd

Capital SFB

Suryoday Small Finance Bank Ltd

Equitas Small Finance Bank Ltd

ESAF

Utkarsh SFB

Payments & Fintech

Paytm***

SBICARD

PB Fintech

Fino Payments Bank Ltd

Life Insurance

MAXF**

6M

-11.4

-7.3

-13.6

-7.9

-1.9

6M

2.5

-3.8

0.1

-10.2

7.9

-8.1

-16.1

-20.9

-13.4

-5.8

-17.7

-14.6

-33.4

-27.1

-27.8

-31.2

-27.2

-28.6

-53.8

6M

-7.6

-3.9

-14.1

-9.3

-25.6

-21.8

-19.0

-9.7

-15.6

-31.7

-29.4

-28.4

-30.3

6M

-28.1

-31.6

-17.7

-14.4

-47.2

-33.6

-47.3

-54.7

6M

3.7

6.4

-26.7

-41.4

6M

-9.6

Price Perf (%)

YTD

0.8

2.6

-17.7

2.7

12.1

YTD

18.1

18.1

16.1

13.3

11.6

8.1

-1.2

-10.8

-11.2

-13.5

-16.2

-22.1

-23.1

-24.3

-29.9

-30.6

-32.7

-35.8

-56.4

YTD

-3.9

-4.0

-22.1

-26.7

-28.7

-29.0

-29.7

-30.2

-30.8

-31.4

-31.4

-32.9

-34.9

YTD

2.1

-13.0

-20.4

-25.8

-38.6

-39.4

-51.8

-54.1

YTD

71.1

23.5

20.5

-21.2

YTD

3.8

1 Year

2.2

3.8

-14.7

3.7

14.0

1 Year

17.7

17.9

17.5

19.1

14.7

9.9

-1.2

-14.2

-13.4

-20.8

-12.1

-19.5

-24.5

-25.0

-32.8

-32.3

-36.3

-31.1

-54.4

1 Year

-1.2

-1.9

-19.0

-24.0

-25.1

-24.9

-25.7

-29.8

-29.4

-31.1

-31.6

-33.2

-33.4

1 Year

-15.0

-24.5

-40.8

-40.5

3 Year

9.2

9.9

28.1

9.5

11.1

3 Year

4.9

21.8

20.8

8.3

3.1

61.5

11.8

19.0

14.1

47.2

7.7

-22.9

42.8

7.4

7.5

29.4

4.2

-10.1

3 Year

12.9

47.2

24.0

41.2

35.6

22.2

34.4

38.9

25.4

30.3

31.7

43.5

34.0

3 Year

-5.4

27.9

-4.2

1.6

CAGR (%)

5 Year

20.2

16.9

31.1

14.9

17.3

5 Year

10.4

15.0

29.4

-3.0

10.0

19.8

10.8

3.4

-7.6

7.9

10 Year

9.9

9.8

4.6

8.9

11.6

10 Year

17.3

16.2

19.9

14.3

17.9

13.3

15.3

1.2

7.5

2.5

-21.8

11.8

7.1

-38.7

7.8

-23.1

-15.6

5 Year

20.4

17.1

12.7

7.9

26.7

-20.4

4.3

20.7

2.1

6.5

22.7

12.6

7.0

5 Year

9.8

8.7

-14.4

-5.6

4.6

10 Year

15.1

16.6

4.2

-0.9

1.7

-10.7

-2.9

-2.9

-7.9

-2.3

-2.0

-7.6

-1.4

10 Year

1 Year

85.8

20.5

23.2

-22.7

1 Year

8.0

3 Year

4.9

-0.4

20.9

-7.9

3 Year

8.9

5 Year

17.5

22.3

34.5

5 Year

27.6

10 Year

10 Year

18 March 2025

9

Financials: Banks

Company Name

HDFCLIFE**

SBILIFE**

IPRULIFE**

LICI**

General Insurance

ICICI Lombard

Star Health

Capital Market

Prudent corporate advisory

Kfin

Aditya Birla AMC

IIFL Wealth

CDSL

ICICI Securities

Nippon India AMC

Nuvama Wealth

UTI AMC

HDFC AMC

Anand Rathi

Angel One

Exchanges

BSE

MCX

Housing Finance

Aavas

India Shelter

PNB HF

HomeFirst

Aptus Housing Finance

LIC HF

CanFin

Repco

Vehicle Finance

Indostar

Shriram Finance

Cholamandalam

MMFS

Gold Finance

Muthoot

Manappuram

Diversified

BAF

Bajaj Finserv

PIEL

PFC

IIFL Finance

ABCL

REC

LTFH

MAS Financial

Fedbank Financial Services

Poonawalla

Jio Finance

NBFC - MFIs

CreditAccess

Muthoot MicroFin

6M

-9.9

-21.2

-26.8

-27.0

6M

-18.0

-41.2

6M

-13.3

-10.4

-21.3

-21.3

-27.3

-0.8

-17.8

-19.5

-28.6

-15.3

-13.5

-22.6

6M

18.9

-12.3

6M

4.5

-23.7

-15.0

-13.2

-22.8

-29.0

-43.0

6M

-8.1

-9.0

-7.5

-15.9

6M

13.2

-0.6

6M

16.5

1.2

-18.6

-19.2

-40.4

-28.1

-24.2

-20.3

-18.6

-27.6

-37.6

6M

-26.6

Price Perf (%)

YTD

-0.6

-4.4

-9.9

-18.6

YTD

2.4

-34.2

YTD

59.3

48.9

30.4

26.5

23.6

16.7

14.8

14.6

13.5

-0.2

-7.5

-35.0

YTD

57.5

48.1

YTD

45.2

29.7

27.2

11.3

-6.2

-14.8

-16.9

-20.8

YTD

37.2

32.1

25.9

-1.2

YTD

54.7

21.1

YTD

18.4

13.9

4.5

-0.1

-6.9

-7.7

-8.4

-11.4

-14.9

-24.9

-37.8

-37.9

YTD

-36.2

-39.4

1 Year

-0.4

-4.4

-3.4

-19.4

1 Year

4.5

-35.9

1 Year

65.1

49.0

23.9

23.1

23.1

16.9

16.5

27.3

10.1

-1.9

-4.5

-24.6

1 Year

90.3

52.2

1 Year

40.0

42.7

27.7

21.4

-10.9

-13.7

-20.6

1 Year

33.6

37.5

36.3

5.3

1 Year

70.7

26.5

1 Year

31.7

19.1

8.4

2.3

-13.9

-6.9

-7.6

-7.1

-14.9

-37.4

1 Year

-35.3

-40.8

3 Year

5.9

8.3

3.7

3 Year

10.8

-17.5

3 Year

6.0

30.1

11.3

10.7

17.0

-0.1

18.7

81.7

6.9

3 Year

61.4

51.5

3 Year

-8.5

34.0

10.3

-8.8

12.6

0.9

17.7

3 Year

2.7

40.3

26.5

20.4

3 Year

19.6

21.0

3 Year

7.0

4.6

-10.7

61.2

3.2

13.8

63.6

25.2

8.2

5.1

3 Year

6.5

CAGR (%)

5 Year

15.4

36.1

12.3

19.4

5 Year

41.2

3.1

5 Year

45.4

24.3

14.0

22.7

28.0

22.5

12.0

77.0

24.6

64.9

40.9

45.1

5 Year

66.7

74.4

5 Year

44.1

21.3

21.1

26.6

-1.2

11.1

15.2

0.6

5 Year

-3.2

15.2

36.5

-2.2

5 Year

49.4

-7.4

5 Year

94.6

43.5

23.6

4.8

0.0

-12.1

6.1

-14.5

-4.7

-22.7

-1.2

-6.5

5 Year

24.5

-17.0

10 Year

10 Year

10 Year

10 Year

10 Year

10 Year

10 Year

10 Year

10 Year

18 March 2025

10

Financials: Banks

Company Name

Fusion Micro

Spandana Sphoorty

Ratings agencies

ICRA

Care Ratings

CRISIL

MSME

SBFC Finance

Five Star Business Finance

6M

-55.7

-60.4

6M

-20.6

8.0

-7.2

6M

-4.8

-12.3

Price Perf (%)

YTD

-70.6

-71.3

YTD

-0.7

-4.0

-13.3

YTD

0.9

-7.3

1 Year

-72.0

1 Year

0.0

-0.7

-11.7

1 Year

6.9

3 Year

-13.7

3 Year

12.2

28.2

15.2

3 Year

CAGR (%)

5 Year

10 Year

-15.0

-4.8

5 Year

10 Year

77.4

28.4

70.2

5 Year

10 Year

-23.1

16.7

Source: Company; MOFSL

18 March 2025

11

Financials: Banks

Exhibit 7: BFSI valuation matrix

Val

summary

Private Banks

ICICIBC*

HDFCB*

AXSB*

BANDHAN

KMB*

IIB

FB

DCBB

IDFCFB

EQUITASB

AUBANK

RBK

PSU Banks

SBIN*

PNB

BOB

CBK

UNBK

INBK

Payments & Fintech

One 97 Comm.

SBI Cards

Life Insurance

HDFC Life Insur.

ICICI Pru Life

SBI Life Insurance

Max Financial

Life Insurance Corp.

General Insurance

Star Health

ICICI Lombard

Broking and Exchanges

Angel One

BSE

MCX

Wealth Management

Anand Rathi Wealth

Nuvama Wealth

360 ONE WAM

Prudent Corp.

Intermediaries

Cams Services

KFin Technologies

CDSL

AMCs

Aditya Birla AMC

HDFC AMC

Nippon Life AMC

UTI AMC

Housing Finance

LIC Housing Fin

Rating

FY27E

Buy

Buy

Neutral

Neutral

Buy

Neutral

Buy

Buy

Neutral

Buy

Buy

Neutral

Buy

Buy

Neutral

Buy

Buy

Buy

Neutral

Neutral

CMP MCap TP Upside EPS (INR)

RoA (%)

RoE (%)

P/E (x)

P/BV (x)

(INR) (INRb) (INR) (%) FY26E FY27E FY26E FY27E FY26E FY27E FY26E FY27E FY26E FY27E

1,268

1,710

1,034

138

1,993

677

177

106

53

56

492

154

723

87

206

82

113

499

689

843

8,955

13,078

3,200

223

3,962

527

435

33

387

64

366

94

6,450

1,005

1,065

748

859

672

438

802

1,550

2,050

1,175

170

2,200

925

225

150

70

77

730

170

925

125

250

115

135

670

950

800

22

20

14

23

10

37

27

42

32

37

48

10

28

43

22

39

20

34

38

-5

27

42

32

13

46

57

22

62

74

23

23

35

46

10

34

42

42

43

28

57

41

33

71.7 82.0

93.7 108.1

89.8 104.2

21.9 25.7

80.3 95.7

99.1 121.7

19.0 23.7

23.9 30.7

4.4

6.7

5.8

9.1

37.4 48.5

20.5 32.1

84.1

16.6

37.7

18.8

22.8

84.0

-3

30

9.7

10.2

24.4

16.9

77.9

18.4

59.7

161

138

144

48

310

32

60

111

26

34

37

131

26

79

94.1

18.7

42.2

20.7

24.4

92.3

13

40

11.1

13.4

27.4

22.8

86.5

25.4

67.6

215

168

178

57

349

38

76

132

32

42

42

149

30

89

2.2

1.7

1.6

1.7

2.2

1.3

1.2

0.9

0.8

1.2

1.7

0.8

1.0

1.0

1.1

1.0

1.1

1.3

0.8

4.1

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

1.6

2.2

1.8

1.7

1.7

2.3

1.4

1.3

1.0

1.0

1.5

1.7

1.1

1.1

1.0

1.1

1.0

1.1

1.2

5.0

4.6

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

1.7

17.0

13.7

14.6

14.0

13.5

11.1

13.3

13.3

8.1

10.6

15.7

7.9

17.2

14.9

15.0

17.7

15.5

17.3

1.3

18.9

16.5

19.5

19.6

19.4

11.0

13.6

19.9

22.2

44.2

46.7

45.2

31.3

19.1

32.5

46.0

33.0

38.0

28.5

34.7

39.4

18.6

13.9

16.8

14.2

14.7

14.8

14.0

12.3

14.6

14.9

11.2

15.0

17.3

11.6

16.8

14.9

15.0

17.5

14.7

16.6

13.9

15.2

10.2

6.3

16.3

6.8

9.3

4.4

12.0

9.6

13.1

7.5

5.6

5.3

5.5

4.4

4.9

5.9

12.2

13.1

8.8

5.4

13.7

5.6

7.5

3.5

7.9

6.1

10.1

4.8

5.0

4.7

4.9

4.0

4.6

5.4

2.2

2.0

1.4

0.8

2.1

0.7

1.2

0.5

0.9

1.0

1.9

0.6

0.9

0.7

0.8

0.7

0.7

0.9

3.5

4.9

2.1

1.3

1.7

1.6

0.5

2.5

5.4

2.6

28.2

15.4

13.9

5.1

4.9

46.9

13.2

10.8

11.0

4.3

9.5

8.3

2.1

0.7

1.9

1.8

1.2

0.8

1.8

0.6

1.0

0.5

0.8

0.9

1.6

0.5

0.8

0.6

0.7

0.6

0.6

0.8

3.5

4.0

1.8

1.1

1.4

1.4

0.5

2.1

4.6

2.2

23.3

13.8

10.3

4.5

4.7

35.6

11.2

8.9

9.5

3.9

8.7

8.1

2.0

0.6

8.9 -203.8 52.8

20.8 28.0 21.2

17.1

20.0

18.8

19.3

10.9

16.2

19.5

25.4

46.3

52.3

39.8

31.3

21.0

30.9

46.6

34.5

40.8

28.8

36.2

45.5

19.9

14.1

64.7

54.1

58.8

61.5

9.6

19.4

28.9

12.3

28.7

34.5

35.8

17.3

26.4

33.1

31.0

35.6

30.9

16.0

28.7

21.2

11.7

5.5

56.5

40.9

52.3

45.6

8.6

14.0

25.5

9.2

23.6

27.9

29.7

15.3

22.7

26.2

26.0

28.2

24.9

14.1

25.2

18.0

10.3

4.8

Buy

630 1,355 800

Buy

549

791

780

Buy

1,435 1,436 1,900

Neutral 1,040 359 1,180

Buy

745 4,712 1,085

Buy

Buy

357

1,725

210

853

179

536

253

142

189

332

83

168

156

221

171

799

341

117

287

560

2,100

3,200

6,900

6,100

2,100

7,200

1,250

2,200

4,600

1,300

1,500

850

4,800

850

1,300

690

Buy

1,981

Buy

3,962

Neutral 4,958

Neutral 1,704

Buy

5,350

Buy

854

Neutral 1,998

Buy

3,426

Neutral 912

Neutral 1,058

Buy

Buy

Buy

Buy

Buy

593

3,746

541

923

521

95.1 107.7

18 March 2025

12

Financials: Banks

Rating CMP MCap TP Upside EPS (INR)

RoA (%)

RoE (%)

P/E (x)

P/BV (x)

Val

summary

FY27E

(INR) (INRb) (INR) (%) FY26E FY27E FY26E FY27E FY26E FY27E FY26E FY27E FY26E FY27E

PNB Housing

Buy

801

208 1,160 45

88.9 107.6 2.5

2.6

12.9 13.9

9.0

7.4

1.1

1.0

AAVAS Financiers

Neutral 1,913 150 1,800

-6

88.9 108.8 3.3

3.4

14.9 15.7 21.5 17.6

3.0

2.6

Home First Fin.

Buy

1,004 89 1,280 27

52.5 64.0

3.4

3.4

17.4 18.0 19.1 15.7

3.1

2.6

Can Fin Homes

Neutral 623

83

675

8

68.8 78.9

2.2

2.2

16.6 16.4

9.1

7.9

1.4

1.2

Repco Home Fin

Neutral 316

20

400

26

70.1 76.9

2.8

2.8

12.4 12.1

4.5

4.1

0.5

0.5

Vehicle Finance

Chola. Inv & Fin.

Buy

1,456 1,223 1,600 10

66.8 88.0

2.6

2.8

20.9 21.7 21.8 16.5

4.0

3.2

M & M Financial

Buy

275

340

355

29

24.5 30.8

2.1

2.3

13.9 15.8 11.2

8.9

1.5

1.3

Shriram Finance

Buy

623 1,171 700

12

52.6 63.6

3.2

3.3

15.8 16.4 11.8

9.8

1.7

1.5

IndoStar Capital

Buy

260

35

325

25

9.3 18.6

1.1

1.7

3.9

7.2

27.9 14.0

1.0

1.0

Gold Finance

Muthoot Finance

Neutral 2,290 919 2,300

0

163.0 182.3 5.4

5.2

21.1 20.1 14.1 12.6

2.7

2.3

Manappuram Finance

Neutral 210

177

215

3

27.4 34.9

4.2

4.7

16.4 18.1

7.7

6.0

1.2

1.0

Diversified

Bajaj Finance

Neutral 8,580 5,311 8,380

-2

343.7 435.6 4.0

4.1

19.8 21.0 25.0 19.7

4.6

3.8

Poonawalla Fincorp

Buy

290

224

360

24

14.1 21.2

2.8

3.2

12.7 16.7 20.6 13.7

2.5

2.1

Aditya Birla Cap

Buy

162

422

240

48

15.2 19.4

0.0

0.0

12.5 14.1 10.6

8.3

1.3

1.1

L&T Finance

Buy

140

349

170

21

12.6 16.7

2.4

2.7

11.8 14.1 11.1

8.4

1.2

1.1

Piramal Enterp.

Neutral 888

199 1,025 15

49.5 66.0

1.1

1.3

4.1

5.2

17.9 13.4

0.7

0.7

MAS Financial

Buy

243

44

330

36

21.7 26.4

3.0

3.1

14.7 15.6 11.2

9.2

1.5

1.3

IIFL Finance

Buy

307

130

415

35

46.5 59.0

3.2

3.4

15.4 16.9

6.6

5.2

1.0

0.8

Microfinance

CreditAccess

Buy

919

146 1,170 27

89.5 125.8 4.6

5.3

18.6 21.4 10.3

7.3

1.7

1.4

Fusion Finance

Neutral 137

14

175

28

16.4 28.8

2.1

3.2

9.6 14.9

8.3

4.8

0.8

0.7

Spandana Sphoorty

Buy

241

17

395

64

11.9 47.0

0.9

2.9

3.1 11.3 20.3

5.1

0.6

0.5

Power Financiers

PFC

Buy

390 1,286 475

22

56.3 60.7

3.1

3.0

19.1 18.0

6.9

6.4

1.2

1.1

REC

Buy

413 1,087 550

33

71.5 78.1

2.8

2.6

21.5 20.1

5.8

5.3

1.1

1.0

MSME

Five-Star Business

Buy

667

195

930

39

42.1 49.0

7.7

7.1

17.9 17.5 15.9 13.6

2.6

2.2

*Adjusted for subsidiaries; **BV represents EV, RoE represents ROEV, and P/ABV represents P/EV; ***For Paytm, ABV represents Sales per

share

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

18 March 2025

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Financials: Banks

NOTES

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14

Financials: Banks

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

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Details of associate entities of Motilal Oswal Financial Services Limited are available on the website at

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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

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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

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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

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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 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

.

Specific Disclosures

1. Research Analyst and/or his/her relatives do not have a financial interest in the subject company(ies), as they do not have equity holdings in the subject company(ies).

MOFSL has financial interest in the subject company(ies) at the end of the week immediately preceding the date of publication of the Research Report: Yes.

Nature of Financial interest is holding equity shares or derivatives of the subject company

2. Research Analyst and/or his/her relatives do not have actual/beneficial ownership of 1% or more securities in the subject company(ies) at the end of the month immediately

preceding the date of publication of Research Report.

MOFSL has actual/beneficial ownership of 1% or more securities of the subject company(ies) at the end of the month immediately preceding the date of publication of Research

Report:No

3. Research Analyst and/or his/her relatives have not received compensation/other benefits from the subject company(ies) in the past 12 months.

MOFSL may have received compensation from the subject company(ies) in the past 12 months.

4. Research Analyst and/or his/her relatives do not have material conflict of interest in the subject company at the time of publication of research report.

MOFSL does 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 an officer, director or employee of subject company(ies).

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(ies) in the past 12 months.

18 March 2025

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Financials: Banks

8.

MOFSL may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company(ies)

in the past 12 months.

9. MOFSL may have received compensation or other benefits from the subject company(ies) or 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

-

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.

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.

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 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

Contact No.

Email ID

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022 40548000 / 022 67490600

query@motilaloswal.com

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022 40548082

servicehead@motilaloswal.com

Mr. Ajay Menon

022 40548083

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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