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Jefferies Sees Buying Opportunities in Banks Ahead of Q2 Earnings
Bank shares had been falling, and the BSE Bankex was down nearly 8% this year.
Jefferies looked at five private banks before their second-quarter earnings.
The brokerage recommended buying shares in all five.
It gave each bank a price target, which is its stated estimate for the share price.
The banks also shared updates about their September-quarter business.
HDFC, Axis and Kotak reported faster loan growth than in the previous quarter.
IndusInd’s loan growth improved from a decline in the June quarter to growth in September.
Kotak’s reported growth figures were helped by some foreign-currency deposits.
The BSE Bankex was down nearly 8% for the year amid selling pressure across the sector.
Jefferies issued buy calls on HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and IndusInd Bank.
Its price targets were Rs 880 for HDFC Bank, Rs 1,750 for ICICI Bank and Rs 1,700 for Axis Bank.
Jefferies set targets of Rs 460 for Kotak Mahindra Bank and Rs 1,250 for IndusInd Bank.
The banks reported varying September-quarter growth in loans, deposits and CASA; Kotak’s reported figures included FCNR-B deposits.
- Who
- Jefferies and five banks: HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and IndusInd Bank.
- What
- Jefferies gave the banks buy calls and price targets, alongside analysis of their September-quarter business updates.
- Where
- The Indian banking sector; the article cites BSE share prices.
- When
- Ahead of the second-quarter earnings; the updates cover the September quarter.
- Why
- The brokerage assessed the banks’ business updates amid selling pressure across the sector.
Key facts
- BSE Bankex
- Down nearly 8% this year, according to the article.
- Jefferies ratings
- Buy calls on all five banks covered.
- HDFC Bank
- Price target Rs 880; September-quarter loans grew 16% year-on-year, deposits 19% and CASA deposits 11%.
- ICICI Bank
- Price target Rs 1,750; the article lists its share price at Rs 1,343.
- Axis Bank
- Price target Rs 1,700; September-quarter loans grew 23%, deposits 21% and average CASA 14% year-on-year.
- Kotak Mahindra Bank
- Price target Rs 460; loans grew 25%, deposits 23% and CASA 11% year-on-year. The reported figures benefited from $5.8 billion of FCNR-B deposits, including $1.7 billion channelled into loans.
- IndusInd Bank
- Price target Rs 1,250; September-quarter loans grew 11%, deposits 10% and CASA 10% year-on-year.
Sources
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