Analyses covering the Indian banking sector
US banking ecosystem: Crisis on the way?
The recent collapses of SVB and Signature bank created massive panic among depositors and investors in the US. In this story, we address what needs to happen for other banks to be forced to book losses on their security portfolios, and what the triggers are and how much cushion US banks have.
Apr 01, 2023 Banking Wealth
Q3 FY23 Bank Earnings & the NIM story
Q3'23 earnings, and this quarter, like the last one, has been solid. Net interest margins (NIMs) - the spreads between lending yields and cost of funds - have gone up across the board.
Feb 25, 2023 Banking Earnings
How did banking do in 2022?
This article highlights 5 interesting takeaways from RBI's 'trends & progress in banking' report. This document is a ~250-pager published by RBI once a year, covering a wide variety of information on the performance of banks and non-banks.
Jan 07, 2023 Banking
Q2 FY23 Bank earnings - 5 interesting themes
Q2 FY23 earnings season is here, and similar to last quarter, banks continue to report strong earnings growth.
Nov 05, 2022 Banking Earnings
2022 Economics Nobel: Lessons for India
Our update this week is an attempt to provide a simplified summary of the 2022 Nobel prize in economic sciences and potential applications to Indian economy.
Oct 22, 2022 Banking
Next for banks - Retail? MSME? Corporates?
However, even if the global economy enters a recession, India is very well positioned. We've done a great job of keeping inflation under control and our GDP is estimated to grow by 7.4% in FY23 (IMF estimates). But it's not just inflation control, there is more to cheer about!
Sep 24, 2022 Banking
Utkarsh, Fincare IPOs coming soon - worth it?
Two Small Finance Banks (SFBs) - Fincare and Utkarsh - filed their DRHPs with SEBI in early August. Both are IPOing since they have to - they are mandated (per RBI guidelines) to go public within 3 years of crossing networth of Rs. 500 crores, and they've both hit this timeline.
Sep 03, 2022 Banking Lending
Q1 FY23 Bank earnings - Ups, downs & ICICI's card play
Key highlights from Bank Q1 FY23 earnings - most banks reported strong net profit growth aided by lower provisions. However, several saw a contraction in their PPOP and some banks are taking a bet on unsecured retail.
Aug 20, 2022 Banking Earnings
Is Corporate lending making a comeback?
Retail lending has significantly increased over the last 10 years, and this has happened at the expense of corporate lending. Our update this week dives into why we think corporate lending might be well positioned to take off over the next few years.
Jul 02, 2022 Banking Lending
Q4 Bank earnings: Fintechs, pay heed!
Q4 2022 earnings season is here, and we're back with our quarterly ZCharts earnings dashboards. Most banks have reported strong growth in profitability this quarter - some of the larger banks like Canara, Kotak, ICICI and Axis have delivered YoY profit growth north of 50%!
May 14, 2022 Earnings Banking
Will RBI rate hikes beat inflation? [Guest post #2]
RBI announced a 'surprise' rate hike this past Wednesday at an unscheduled meeting - key policy rates that were hiked include the repo rate (+40 bps or basis points, 100 bps is 1%) and the cash reserve ratio or CRR (+50 bps).
May 07, 2022 Banking
The HDFC Bank + HDFC Limited merger
HDFC Bank and HDFC Limited, two of the largest financial entities in India, are merging into one. This merger - subject to regulatory approvals - will create a combined balance sheet of ~25 Trillion rupees – that is equivalent to ~12% of India’s GDP!
Apr 09, 2022 Banking NBFC
Q3FY'22 : Part I Earnings - Banks
Q3 FY2022 earnings season is here, and we are back with our quarterly ZCharts earnings dashboards that allow you to access financial services earnings in a single place - in a visual, easy to consume format.
Feb 05, 2022 Earnings Banking
Dhani v/s InCred - the art of debt-raising
Dhani and InCred - two fintech lending companies - are raising debt from the public. Both companies opened an NCD offering (non-convertible debenture, a borrowing instrument) this month - Dhani's offer closed earlier this week (27th Jan), and InCred's issue closes mid-February.
Jan 29, 2022 Banking NBFC
Did banking progress in 2021?
Happy New Year! We're back post-break with a look at the RBI's annual report on the trends & progress in banking- a 248-pager that was released end of December. While it is impossible to do justice to this mammoth report in a single ZCharts analysis, we've pulled out 4 interesting insights for you.
Jan 08, 2022 Banking