Motilal Oswal - MOSL: FINANCIALS-Fresh lending rate moderates further, spread remains stable

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Motilal Oswal

Nitin Aggarwal

EUR 120.00 For Business Accounts Only

MOSL: FINANCIALS-Fresh lending rate moderates further, spread remains stable

Financials: Fresh lending rate moderates further, spread remains stable; Weighted term deposit rate moderates 6bp MoM for private banks

PSBs/private banks' weighted average lending rate (WALR) on fresh loans declined by 6bp/2bp MoM to ~9.2%/~10.2% in Sep'19, according to the Reserve Bank of India's (RBI) latest release.
With the sharp cuts in the retail and bulk term deposit rates, the weighted average term deposit cost (WATDR) for private banks moderated by 6bp MoM in Sep'19 (-14bp in FY20YTD). The peak deposit rate for HDFCB/AXSB/ICICIBC has declined by 55bp-65bp in FY20YTD.
The lending yield differential between private banks and PSBs stands at ~100bp, while the deposit rate differential is at 30bp. As a result, the spread differential between private banks and PSBs continues widening.

15/11/2019 6 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Analysts

Nitin Aggarwal

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MOSL: FINANCIALS-Fresh lending rate moderates further, spread remains stable

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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