BFSI Q4 Earnings Preview - Revived Business Growth Momentum; Asset Quality Narrative Key: ICICI Securities 
A customer holds a bundle of Indian rupee banknotes while filling in a deposit form at a branch of the HDFC Bank Ltd. in Mumbai, India. (Photographer Dhiraj Singh/Bloomberg)

BFSI Q4 Earnings Preview - Revived Business Growth Momentum; Asset Quality Narrative Key: ICICI Securities 

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.

ICICI Securities Report

Business updates released for financiers in Q4 FY21 suggest revived business growth momentum, both on credit (3-6% QoQ growth) as well as deposit front (510%).

However, key to watch out for in Q4 FY21 earnings would be -

1. Actual stress tagging and reported gross non performing assets - though not much deviation is expected from pro forma NPAs;

2. provisioning build-up (both on incremental stress and contingency, if any);

3. narrative on Covid-19 second wave impact – financiers will be conservative in not utilising the contingency buffer; and

4. how benefit of funding cost and portfolio mix shift offsets interest on interest reversal and lower credit-deposit ratio.

Click on the attachment to read the full report:

ICICI Securities BFSI Q4FY21 Preview.pdf

DISCLAIMER

This 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 author entity 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.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.