Banks, Insurance Results Preview - Quarter Of Consolidation, With An Eye On Earnings Recovery: Motilal Oswal

A motorcyclist and passenger travel past branches of ICICI Bank Ltd., HDFC Bank Ltd. and Punjab National Bank on a near-empty street in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Banks, Insurance Results Preview - Quarter Of Consolidation, With An Eye On Earnings Recovery: Motilal Oswal

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

The momentum in recovery gained over Q4 FY21 was impacted by the second Covid-19 wave, with the asset quality outlook deteriorating once again.

Business activity was impacted by the second Covid-19 wave over April–May 2021, and localised lockdowns were seen across most states.

As a result, systemic growth moderated to 5.8% as of June 18, 2021 (1% decline over FY22-year-to-date).

While economic activity has started to pick up since June, we expect business growth to remain modest over Q1 FY22 and estimate systemic loan growth of 9%/13% for FY22E/FY23E.

Nevertheless, we estimate our banking coverage universe to deliver ~6%/41% pre-provision operating profit/profit after tax growth in Q1 FY22E (on a low base).

Click on the attachment to read the full report:

Motilal Oswal Banks & Insurance Q1FY22 Result Preview.pdf

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