India Banking - Deciphering Interest Rate Sensitivity In EBR Rate Regime: 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.We expect the Reserve Bank of India to normalise the liquid asset facility corridor fully by April Monetary Policy Committee meeting, and MPC to change its monetary policy stance by June meeting. One can expect more than two-three repo rate hikes in FY23, given the expectations of sticky inflation, favorable growth and FED tightening. In this report, we assess the implication of a rise in interest rates for banks’ net interest margin trajectory. Nearly 62% of private bank FY21 advances were floating rate loans and 43% of the same were external benchmark rate linked. Every 100 basis points increase in benchmark rates would likely lead to 50-70 bps repricing of yields. State Bank of India, Kotak Mahindra Bank Ltd., Axis Bank Ltd. and Federal Bank Ltd. will see relatively more favorable yields compared to HDFC Bank Ltd., IndusInd Bank Ltd., RBL Bank Ltd. and Bandhan Bank Ltd. .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 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.

India Banking - Deciphering Interest Rate Sensitivity In EBR Rate Regime: ICICI Securities

India Banking - Deciphering Interest Rate Sensitivity In EBR Rate Regime: ICICI Securities

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