Nifty tad above 16,600; bank stocks decline
Published on Jul 25, 2022 10:30
The domestic equity benchmarks tumbled and hit the day`s low in morning trade. The Nifty traded tad above the 16,600 mark. Bank stocks witnessed some bit of profit booking after advancing in the past six sessions.
At 10:27 IST, the barometer index, the S&P BSE Sensex, was down 366.39 points or 0.65% to 55,705.84. The Nifty 50 index lost 116.50 points or 0.7% to 16,602.95.
In the broader market, the S&P BSE Mid-Cap index rose 0.09% while the S&P BSE Small-Cap index slipped 0.16%.
The market breadth was negative. On the BSE, 1,301 shares rose and 1,795 shares fell. A total of 180 shares were unchanged.
Axis Bank (down 0.28%), Canara Bank (down 1.35%), Tata Steel (up 1.22%), Tech Mahindra (down 1.20%), Indian Energy Exchange (down 2.02%), Aether Industries (up 0.51%), Central Bank of India (down 0.54%), Glaxosmithkline Pharmaceuticals (down 0.10%), KPIT Technologies (up 0.09%), Lakshmi Machine Works (up 1.15%), Macrotech Developers (up 0.63%), Solar Industries India (up 2.80%), Supreme Industries (down 1.53%), Tanla Platforms (up 0.35%) are some of the companies that will announce their quarterly earnings today.
The Nifty Bank index shed 0.21% to 36,662.95. The index had advanced 6.03% in the past six sessions.
Bandhan Bank (down 2.57%), AU Small Finance Bank (down 1.67%), Bank of Baroda (down 1.55%) and Federal Bank (down 0.75%) were the top losers.
Among the other losers were Punjab National Bank (down 0.63%), IDFC First Bank (down 0.42%), HDFC Bank (down 0.34%) and State Bank of India (down 0.11%).
Kotak Mahindra Bank fell 1.27%. The bank reported a 26.1% rise in standalone net profit to Rs 2,071.15 crore on a 9.6% increase in total income to Rs 8,582.25 crore in Q1 FY23 over Q1 FY22.
Net interest income (NII) grew by 19% year on year to Rs 4,697 crore in Q1 FY23 from Rs 3,942 crore posted in Q1 FY22. Net interest margin (NIM) improved to 4.92% in Q1 FY23 from 4.60% posted in the corresponding quarter last year.
The bank held total provisions (including specific, standard, COVID-19 related etc.) of Rs 23.59 crore as of 30 June 2022. The provision coverage ratio stood at 72.6% at the end of 30 June 2022.
On the asset quality front, gross NPA ratio was 2.24% as of 30 June 2022 as against 2.34% as of 31 March 2022 and 3.56% as of 30 June 2021. The net NPA ratio was 0.62% as of 30 June 2022 as against 0.64% as of 31 March 2022 and 1.28% as at 30 June 2021.
ICICI Bank rose 0.45%. The bank`s standalone net profit rose 49.6% to Rs 6,904.94 crore on 16.23% increase in total income to Rs 28,336.74 crore in Q1 FY23 over Q1 FY22.
Net interest income (NII) increased 21% year on year to Rs 13,210 crore in Q1 FY23 from Rs 10,936 crore posted in Q1 FY22. The net interest margin was 4.01% in Q1 FY23 compared to 3.89% in Q1 FY22 and 4% in Q4 FY22.
The bank`s provisions and contingencies (excluding tax provisions) fell 60% to Rs 1,144 crore in Q1 FY23 over Q1 FY22. Provisions for Q1 FY23 included contingency provision of Rs 1,050 crore made on a prudent basis.
On the asset quality front, ratio of gross NPAs to gross advances stood at 3.41% as on 30 June 2022 as against 3.60% as on 31 March 2022 and 5.15% as on 30 June 2021. The ratio of net NPAs to net advances stood at 0.70% as on 30 June 2022 as against 0.76% as on 31 March 2022 and 1.16% as on 30 June 2021.
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