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CSB Bank is on its way to transform into a new age bank with a wider presence, offering varied products and using the latest available technology solutions for its operations Highlights -Q1 FY21 profit surges -Gold loans dominate advances book -Margins expand, operating efficiency improves -Asset quality improves, credit cost falls -Aims to transform to a new age bank with backing of a strong promoter -Valuations reasonable, future looks promising ---------------------------------- CSB Bank a new entrant in the list of listed private-sector lenders is a worthy investment option, even as the banking sector faces pressure due to the economic uncertainty unleashed by COVID-19. Ever since we published a note on the bank’s fourth-quarter FY20 earnings on June 16, its stock price has seen a sharp rally of around 60 percent. Our continuing optimism on the stock meant we recommended it in our weekly tactical pick in July-end. Our main premise of CSB Bank...

  Ahuja held 99,02,900 shares or 1.95 percent stake in the bank as of the quarter ending June 2020. RBL Bank Managing Director and CEO Vishwavir Ahuja sold 18,92,900 shares of the company on August 27-28 for around Rs 38.52 crore, the bank said in an exchange filing. He sold the shares to service personal debt obligation as well as to meet some family commitments. "The sale has been driven primarily with the need to extinguish personal debt obligations and related servicing burden, undertaken over the last few years mainly to exercise and purchase vested ESOPs (and pay associated tax), as well as to take care of some pressing family commitments. The sale represents approx. 18 percent of his/family's total holdings and Ahuja continues to retain 80,10,000 shares (approx 1.6 percent holding) of RBL Bank post the sale of these shares," the bank said. As per the release, after the sale, Ahuja still holds an approximate 1.6 percent stake i...

  UBS has a target price for IndusInd bank at Rs 675 and for SBI at Rs 260. Shares of IndusInd Bank surged over 9 percent while those of State Bank of India (SBI) climbed over 3 percent in intraday trade on BSE on August 27 after the global financial firm UBS upgraded the stocks to 'buy' from 'sell'. "Bank stocks are down 12-62 percent year-to-date and have underperformed the broader markets. We think the sector’s downside risks are limited and upgrade IndusInd Bank and SBI from sell to buy," UBS said in a note. UBS has a target price for IndusInd bank at Rs 675 and for SBI at Rs 260. "We reduce FY21E GNPL formation and credit costs but raise our NIM estimates, resulting in a 17-115 percent lift in FY21E earnings for the banks we cover. Our estimates are 4-30 percent higher than consensus for select coverage banks," UBS said. "Stocks are trading below the five-year average and we expect most of the banks to trade near their five-year ave...

  Qualified Institutional Placement (QIP) would be the most preferred way and public sector banks are likely to take a call on taking this route after finalisation of their second quarter results, merchant banking sources said. As many as five large banks, including SBI, PNB and BoB, are likely to sell shares to institutional investors in the second half of this fiscal as they look to shore up their capital base amid the coronavirus pandemic impacting the economy. Qualified Institutional Placement (QIP) would be the most preferred way and public sector banks are likely to take a call on taking this route after finalisation of their second quarter results, merchant banking sources said. According to the sources, banks would get a better picture about their Non-Performing Assets (NPAs), one-time loan restructuring and consequent ratings latest by the end of October. Subsequently, banks can start the process of deciding the time, quantum, appointment o...

  The investigation is reportedly resulting from allegations that HDFC Bank may have issued materially misleading business information to the investing public.   American Law firm, Rosen Law, has announced an investigation of potential securities claims on behalf of shareholders of HDFC Bank. The firm is also preparing for a class action suit on behalf of bank’s shareholders. The investigation is reportedly resulting from allegations that HDFC Bank may have issued materially misleading business information to the investing public. Rosen Law, on its website, asked investors to provide their details if they have purchased HDFC Bank Limited securities and would like to receive information about the investigation concerning the class action to recover the investor losses in HDFC Bank Limited securities. “A representative of The Rosen Law Firm will contact you at no cost to you and provide you detailed information concerning the proposed class action to rec...

  The Monetary Authority of Singapore, Morgan Stanley Investment Management and French bank Societe Generale were the top three investors   The Monetary Authority of Singapore - the city-state’s central bank - is the largest investor in ICICI Bank’s qualified institutional placement (QIP) issue, which concluded on August 15. The Monetary Authority of Singapore picked up 4.6 crore shares for Rs 1,662 crore – more than 11 percent of the Rs 15,000 crore QIP issue, The Times of India reported. The second-largest investor is Morgan Stanley Investment Management, which put in Rs 1,086 crore and French bank Societe Generale which invested Rs 832 crore (2.3 crore shares), it added. ICICI Bank on August 15 said it had completed the allotment of equity shares through QIP, and raised close to Rs 15,000 crore (~$2 billion). The private lender issued 418,994,413 equity shares at an issue price of Rs 358 apiece, the bank informed the exchanges. “The proceeds of th...

  Besides, the corporation has raised Rs 3,693 crore through an issue of non-convertible debentures. It also allotted 1,70,57,400 warrants at an issue price of Rs 180 per warrant, aggregating to around Rs 307 crore under the QIP issue, according to a regulatory filing.   Housing finance major HDFC Ltd on Tuesday said it has raised Rs 10,000 crore equity capital by issuing shares to qualified investors, including Government of Singapore and Invesco Oppenheimer Developing Markets Fund. Besides, the corporation has raised Rs 3,693 crore through an issue of non-convertible debentures. It also allotted 1,70,57,400 warrants at an issue price of Rs 180 per warrant, aggregating to around Rs 307 crore under the QIP issue, according to a regulatory filing. "We wish to inform you that the committee of directors -QIP 2020 of the Corporation at its meeting held today approved the allotment of..securities to eligible qualified institutional buyers pursuant to the issue," H...

In June this year, SBI sold 2.1 percent equity stake in SBI Life Insurance Company via offer for sale route to comply with shareholding norms. The country's biggest lender State Bank of India on July 31 reported a standalone profit of Rs 4,189.34 crore for the quarter ended June 2020, a growth of 81.2 percent over a year-ago period driven by stake sale in life insurance business, but the provisions and lower non-interest income limited growth. Net interest income, the difference between interest earned and interest expended, increased 16.1 percent to Rs 26,641.56 crore in June quarter compared to Rs 22,938.8 crore in year-ago period. Profit as well as NII both were ahead of a CNBC-TV18 poll estimates of Rs 3,222.2 crore and Rs 23,940.3 crore respectively. In June this year, SBI sold 2.1 percent equity stake in SBI Life Insurance Company via offer for sale route to comply with shareholding norms and raised Rs 1,539.73 crore. The provisions and contingencies at R...

The profit numbers beat market estimates as a CNBC-TV18 poll had estimated the number to come at Rs 2,698.8 crore.   Non-banking financial heavyweight HDFC, on July 30, announced a 4.7 percent year-on-year (YoY) fall in June quarter standalone net profit at Rs 3,051.5 crore. In the June quarter of FY20, the company had reported a net profit of Rs 3,203.10 crore. The profit numbers beat market estimates as a CNBC-TV18 poll had estimated the number to come at Rs 2,698.8 crore. The company's revenue came at Rs 13,017.7 crore in Q1FY21 against Rs 12,990.3 crore reported in the corresponding quarter last year. Net interest income (NII) for the June quarter came at Rs 3,392 crore, up 10.17 percent YoY against Rs 3,079 crore in Q1FY20. CNBC-TV18 poll expected NII to come at Rs 3,419.5 crore. The reported net interest margin (NIM) stood at 3.1 percent against 3.3 percent in the corresponding quarter last year. Adjusting the NIM for the impact of negative carry on account o...

IDBI Capital Markets & Securities expects a 44 percent year-on-year (YoY) fall in HDFC's Q1 PAT while it expects the NBFC lender's NII to rise 12.5 percent. Non-banking financial heavyweight HDFC will release its June quarter numbers on July 30 in which it is likely to report a rise in net interest income (NII), but PAT may see a decline. Other than the numbers, the outlook on asset quality, especially on non-individual loans and moratorium books will be in the focus. IDBI Capital Markets & Securities (a wholly-owned subsidiary of IDBI Bank) expects a 44 percent year-on-year (YoY) fall in HDFC's Q1 PAT while it expects the NBFC lender's NII to rise 12.5 percent. Brokerage firm Motilal Oswal Financial Services expects a 9 percent YoY AUM growth for the company driven by non-retail lending. The brokerage sees an incremental cost of funds at nearly 6 percent from capital markets. HDFC's Q1 PAT, as per Motilal Oswal, may fall 26 percent YoY. Motilal ...

Puri has been the managing director of the bank since September 1994 which makes him the longest serving MD at a private bank. As law requires bankers to retire at 70, his 26-year tenure at the bank will end in October. The news of Aditya Puri, managing director of HDFC Bank, selling his major stake in the bank grabbed headlines. As per the FY20 annual report of the bank, Puri held around 77.96 lakh shares of HDFC Bank translating to 0.14 percent stake in the bank as at end-March ’20, of which he sold  74.2 lakh shares for around Rs 840 crore. After the reported transaction, Puri’s holding in HDFC Bank stands reduced to 376,000 shares. Puri has been the managing director (MD) of the bank since September 1994 which makes him the longest-serving MD at a private bank. As the law requires bankers to retire at 70, his 26-year tenure at the bank will end in October. Senior management of banks selling the stocks granted to them through employee stock option plans (ESOP) isn’t new...

Post this transaction, Puri holds 3.76 lakh shares of the bank or 0.01 per cent   NSE LTP – 1120.45 (24/07/2020) Click Here and open free trading and demat a/c and get beginners stock market course for free. limited time offer HDFC Bank managing director, Aditya Puri has sold bank’s shares worth Rs 843 crore (as per current prices) post July 21, stock exchange filings showed. Puri has sold 7.42 million shares or 0.13 percent stake, the bank said. Post this transaction, Puri holds 3.76 lakh shares of the bank or 0.01 per cent.   In a statement, HDFC Bank spokesperson clarified that the value of around Rs 840 crore mentioned in media reports is the value of the shares at current price. "These shares were allotted to Puri at different times and at different price points (not at par). Therefore, the net amount realised by Puri is not Rs 840 crore. The acquisition cost of shares and the tax payable on the transaction has to be accounted for as well," t...

During the quarter, the gross additions to NPAs fell significantly to Rs 1,160 crore, compared to Rs 5,306 crore reported in the same period last year. India's second-largest private sector lender ICICI Bank on July 25 reported Q1 FY21 profit at Rs 2,599.1 crore, a growth of 36.2 percent year-on-year backed by some stake sale in general and life insurance subsidiaries. But the additional COVID-19 related provisions of Rs 5,550 crore limited the profit growth. Net interest income during the quarter increased by 20 percent to Rs 9,280 crore compared to the corresponding period of the previous fiscal, with loan growth of 7 percent and strong deposits growth of 21 percent YoY. Domestic loan book grew by 10 percent in June quarter with retail loan portfolio growth at 11 percent, while growth in the performing domestic corporate portfolio was about 8 percent YoY, the bank said in its BSE filing. "Deposits increased by 21 percent year-on-year to Rs 8,01,6...