EUR 120.00 For Business Accounts Only

MOSL: MOrning India (7/July/22): 1. Financials: 1QFY23 Preview (a. Bank and Insurance; b. NBFCs); 2. Titan Company; 3. Dabur; 4. Godrej Consumer; 5. Macrotech Developers; 6. Equitas Holdings; 7. Healthcare Mont

Financials: Banks and Insurance | 1QFY23 Preview (Earnings outlook resilient; remain watchful of treasury performance)

• Systemic loan is witnessing a healthy revival, with credit growth accelerating to ~12.1% YoY as of 17th Jun'22, led by continued strength in the Retail and SME segment, while the Corporate segment is also seeing a revival. While an uncertain macro and rising inflation can impact the demand environment, we estimate loans to grow by ~12%/13.5% YoY in FY23/FY24.
• We estimate slippages to remain controlled, which, along with healthy recoveries and upgrades, will result in a continuous improvement in asset quality. While the performance of restructured and ECLGS book will be important to assess the credit cost trajectory, we expect credit cost to remain under control, while the balance sheets strengthen further.
• We expect our Banking Coverage Universe to deliver ~26% YoY growth in PAT in 1QFY23, while PPOP will undergo a marginal YoY decline, largely due to higher MTM losses. Private/PSU banks to deliver PAT growth of ~40%/6% YoY while SFB.

• Piping hot news

  Govt asks companies to cut edible oils price by up to Rs 10/L, maintain uniform MRP of same brand oil

  Amid a fall in global prices, the government on Wednesday directed edible oil manufacturers to further cut the maximum retail price (MRP) of imported cooking oils by up to Rs 10 per litre within a week, and maintain a uniform MRP of the same brand of oil across the country. As India imports more than 60 per cent of its edible oil requirement, retail prices came under pressure in the last few months taking cues from the global market. However, there has been a correction, resulting fall in global prices.