BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Research Report
We estimate banking system's margins based on some of Reserve Bank of India's published datapoints on outstanding loans weighted average lending rate, marginal cost of funds based lending rate, term deposit cost and money-market rates in Q2 FY23 (July 2022 and August 2022).
We assume stable net delinquency rate, gross non-performing asset and net non-performing asset for these two months, as reported in Q1 FY23, although, there is a high probability that net delinquency rate and NNPA may drift QoQ.
Our Q2 FY23 estimate (July-22 and Aug-22) shows an average margin expansion of 13 bps, versus 9 bps in Q1 FY23.
Empirical study suggests that within private banks, margins of HDFC Bank Ltd. and Axis Bank Ltd. are positively co-related in a rising interest rate scenario, while within public sector banks, the same is true for State Bank of India.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
