Banking Stocks

Loans booked by consumer financier Bajaj Finance jumped 20 per cent YoY to 7.6 million in Q4FY23, taking the total loans booked by the lender in FY23 to 29.6 million, its highest-ever in a year

Banking stocks outperformed in the just-concluded financial year (2022-23), with the sectoral gauge gaining 12 per cent, against a 0.6 per cent decline in the benchmark National Stock Exchange Nifty

Analysts expect the underperformance in bank stocks to continue ahead as the current fears around the banking sector globally are likely to persist for some time

The sell-off in the banking pack, analysts said, was a knee-jerk reaction to the developments with US-based Silicon Valley Bank (SVB) that announced a share sale to shore up its finances

The Federal Deposit Insurance Corporation seized the assets of Silicon Valley Bank on Friday, marking the largest bank failure since Washington Mutual during the height of the 2008 financial crisis. The FDIC ordered the closure of Silicon Valley Bank and immediately took position of all deposits at the bank. The bank had USD 209 billion in assets and USD 175.4 billion in deposits as the time of failure, the FDIC said in a statement. It was unclear how much of deposits was above the USD 250,000 insurance limit at the moment. Silicon Valley was heavily exposed to tech industry and there is little chance of contagion in the banking sector as a whole, with major banks holding sufficient capital to avoid a similar situation. The financial health of Silicon Valley Bank was increasingly in question this week after the bank announced plans to raise up to USD 1.75 billion in order to strengthen its capital position amid concerns about higher interest rates and the economy.

Adding to SVB's woes, venture capitalists including Peter Thiel's Founders Fund urged portfolio businesses to limit their exposure to the firm

Events snowballed after Silicon Valley Bank announced a share sale to shore up its finances, following a significant loss on its portfolio

On February 8, the board approved allotment of 789.5 million equity shares (swap ratio at 231:100) of Equitas SFB to the eligible shareholders of the erstwhile Equitas Holdings.

Indian Bank said it is in a better financial health, well capitalised and the asset quality is continuously improving.

With Tuesday's decline, the stock price of Axis Bank corrected 6 per cent from its record high level of Rs 970.45, which it had touched on January 4, 2023

In the past six months, the stock of Federal Bank rallied 40 per cent, as compared to 12 per cent rise in the S&P BSE Sensex

Benchmark stock indices Sensex and Nifty closed higher for a second straight day on Tuesday on gains in banking, IT and metal shares following a firm trend in the global markets. The 30-share BSE Sensex jumped 361.01 points or 0.60 per cent to settle at 60,927.43. During the day, it rallied 420.26 points or 0.69 per cent to 60,986.68. The broader NSE Nifty climbed 117.70 points or 0.65 per cent to end at 18,132.30. From the Sensex pack, Tata Steel, Tata Motors, Larsen & Toubro, Asian Paints, Wipro, Bajaj Finance, ICICI Bank, Tech Mahindra and Titan were the major winners. Hindustan Unilever, ITC, Mahindra & Mahindra and Nestle were the laggards. "With strong support from global peers, the domestic market is attempting to recoup its previous week's losses. Metal stocks shone amid hopes of a demand revival in China on reports of loosening COVID restrictions. This, along with fears over supply disruptions from winter storms in the US, resulted in oil prices rising," said Vinod ...

From Ranjeeth Bellary, Partner, EY Forensic & Integrity Services to Rajsri Rengan, HoD - Banking & Payments, India & Philippines, FIS here are panelists who will speak on Technology in Banking

A moderation in new non-performing loans (NPL), improvement in margins, and loan growth are attributed as the reasons for the bullishness in banking stocks

Only five counters closed with losses -Nestle India, Bharti Airtel, PowerGrid, HDFC Bank and Kotak Mahindra Bank, slipping up to 0.76%

Amid moderation in inflation, markets seem to have moved past fears of interest rate hikes and investors are now anticipating strong foreign inflows into domestic equities, analysts said

The stock of state-owned lender surpassed its previous high of Rs 586.1, which it had touched on October 25, 2022

Analysts believe that though balance sheet restructuring in progress, the operationally weak performance and uncertainty on stressed pool remains an overhang

The bank reported a healthy 57 per cent YoY growth in July-September standalone net profit to Rs 1,805 crore driven by a healthy rise in loan disbursement and net interest income.

The trend seems buoyant on the weekly chart with the 200-WMA, placed at Rs 1,285-level, acting as a major support for the stock.