BFSI Q4 Results Preview: Muted Earnings Off A High Base, Says Dolat Capital; Muthoot Finance Among Top Picks

Credit cost is normalizing at higher levels but remains contained. Slippages in credit card and personal loan have likely peaked, but MFI delinquencies will likely be at elevated levels. Expect robust growth trends for affordable housing financiers at 8% QoQ, with sequential improvement in asset quality. Loan growth for gold NBFCs is expected to be strong at 5-10% QoQ as elevated gold prices, seasonally strong demand, and slowdown in unsecured credit drive growth..NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.In Q4 FY25, banks are expected to experience a modest earnings growth of 1% QoQ (-5% YoY), impacted by moderation in growth and net interest margin, and gradual normalization of credit cost. We build in net interest income growth of 2% QoQ/ 4% YoY for coverage banks. Operating profit will be up 6% QoQ (-1% YoY) as seasonally higher fee lines and slightly better treasury gains aid other income. Despite 25 bps repo rate cut in Feb and 30-60% of EBLR linked loan share across most banks, NIM moderation will be limited in Q4 as many banks have three-month reset frequency on EBLR loans. Additionally, NIM across several banks will benefit from SA rate cut during the quarter (including Kotak Mahindra Bank, IndusInd Bank, RBL Bank, City Union Bank, DCB Bank, Federal Bank, CSB). RoAs to remain at the upper end of long-term averages for most banks (barring IndusInd Bank, RBL), led by healthy NIMs, seasonally strong fee lines, robust recoveries, and largely benign credit costs. Credit cost is normalizing at higher levels but remains contained. Slippages in credit card and personal loan have likely peaked, but MFI delinquencies will likely be at elevated levels. .Expect robust growth trends for affordable housing financiers at 8% QoQ, with sequential improvement in asset quality. Loan growth for gold NBFCs is expected to be strong at 5-10% QoQ as elevated gold prices, seasonally strong demand, and slowdown in unsecured credit drive growth..Click on the attachment to read the full report:.Financial Services Q4 Results Preview: DRChoksey Expects Stress To Bottom Out; HDFC AMC Among Top Picks.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BFSI Q4 Results Preview: Muted Earnings Off A High Base, Says Dolat Capital; Muthoot Finance Among Top Picks

Credit cost is normalising at higher levels but remains contained, adds Dolat Capital.

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