Robust credit growth to drive Q2 results for Indian finance cos - InCred

Spandana Sphoorty Financial

06/10/2023 06:31

** Brokerage InCred Equities sees healthy credit growth for Indian financial
services companies in Q2, on improving penetration and higher retail demand
    ** Picks HDFC Bank  HDBK.NS  as preferred stock; sees ICICI Bank  ICBK.NS 
performing better due to strong presence in the retail sector
    ** HDFC Bank and ICICI Bank up 0.5% and 0.8% respectively at 11:00 a.m. IST
    ** Among non-banking finance cos, broker picks Mahindra and Mahindra
Financial Services  MMFS.NS  and Spandana Sphoorty  SPAD.NS  on improving return
ratios
    ** Asset management cos are likely to report positive revenues due to strong
growth in quarterly average assets under management - InCred
    ** However, broker flags margins pressure due to higher yields and rise in
operating expenses, even as asset quality trend remains stable
    ** The broker remains "overweight" on the sector
    ** Nifty bank index  .NSEBANK  has risen ~3.5% YTD, while the financial
services sector  .NIFTYFIN  is up ~4.5%

 (Reporting by Archishma Iyer in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))