KRChoksey: Stable Asset Quality For Private Banks In Challenging Times Amid Moratorium 2

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..KRChoksey Report.Private Banks saw a weak performance in the quarter with slowdown in top line growth and contracting net interest margins.Sequentially loan book declined except HDFC Bank whose loan book grew marginally. Loan disbursement for the quarter fell by 1.2% as April and May were completely shut with limited business activity.On YoY basis loan book was up by 12.8% mainly driven by retail book. Only HDFC Bank was able to record growth of 20.9% in loan book while ICICI Bank and Axis Bank posted single digit YoY growth.Kotak Mahindra Bank adopted more conservative approach on lending and loan book fell by 1.9% YoY / 7.2% QoQ.Deposit mobilisation remained resilient despite slowdown, with Kotak Mahindra Bank having high current account and savings account (CASA) share.Deposits grew 20.6% YoY and 2.1% QoQ; Term deposits as a share of CASA fell 109 basis points QoQ and grew 12 basis points YoY to 42.5%.Kotak Bank was able to fetch more low-cost deposits YoY, which stood at 56.7% in Q1FY21. Excluding Kotak Bank, average CASA ratio stood at 41.2% in the coverage..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint 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 brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

KRChoksey: Stable Asset Quality For Private Banks In Challenging Times Amid Moratorium 2

KRChoksey: Stable Asset Quality For Private Banks In Challenging Times Amid Moratorium 2

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