Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

MUMBAI: Getting the <keyword id="34412" type="ORGANIZATION" weightage="40" keywordseo="economy">economy</keyword> going again will be among the primary tasks of the new government, although there are few concrete signs of a turnaround amid gloomy forecasts of a possibly weak monsoon. But if and when some of the sunnier prognostications come true, the banking sector will be among the beneficiaries. 
 Banking analysts are of the view that once the economy picks up, ICICI Bank and <keyword id="6355975" type="CITY" weightage="40" keywordseo="Axis-Bank">Axis Bank</keyword> will gain on account of loan growth and <keyword id="6357149" type="CITY" weightage="80" keywordseo="HDFC-bank">HDFC Bank</keyword> will benefit on account of better credit quality and margin improvement. 
 "All the three banks - ICICI Bank, HDFC Bank and Axis Bank - are well placed to grow once the economic revival kicks in. In terms of valuation, Axis Bank is cheaper compared to an ICICI Bank," said Vaibhav Agarwal, <keyword id="194323" type="POSITION" weightage="60" keywordseo="banking-analyst">banking analyst</keyword> at Angel Broking. "Axis Bank's focus on its retail business has increased over the past two years. There have been some concerns on the asset-quality front. However, once the policy environment improves, these concerns will be over." 
 
The banks have been consolidating corporate loans and diversifying their balance sheet, so they are positioned to hit the growth button once the economy gains momentum. In the March quarter, the big three private sector lenders saw credit growth in the high teens. 
 
<table align="left" border="0" cellpadding="4" cellspacing="4">
	<tbody>
		<tr>
			<td>
				</td>
		</tr>
	</tbody>
</table>
In the March quarter, ICICI reported a 15% rise in profit to Rs 2,652 crore, while Axis Bank's increased 18.5% to Rs 1,842 crore, both meeting expectations. HDFC Bank's profit grew 23% to Rs 2,327 crore, the slowest in more than a decade and below estimates on account of the sluggish economy and higher tax rates. 
 
Private lenders expect to grow faster than the industry average, which is around 20%. 
 "We expect the system loan growth to be 16-18% in the current financial year. We aim to grow at 2-4% higher than (this) average. So, our credit growth is expected to be 18-20%," said <keyword id="45875" type="PERSON" weightage="40" keywordseo="Chanda-Kochhar">Chanda Kochhar</keyword>, managing director and chief executive officer, ICICI Bank. On the asset quality front, managements feel the worst is over. 
 "ICICI Bank and Axis Bank would be the biggest beneficiaries of an economic revival as they would see loan demand from corporates increase. HDFC Bank will see increase in short-term loan demand and will benefit from improved asset quality," said Saday Sinha, banking analyst, <keyword id="66607" type="CITY" weightage="40" keywordseo="Kotak-securities">Kotak Securities</keyword>. "Axis Bank has exposure to the power sector. In the next one-and-a-half years, if the input linkage problems are not solved, it (Axis Bank) runs the risk of restructuring these accounts." 
 
ICICI Bank and Axis Bank have restructured loans worth Rs 2,156 crore and Rs 1,115 crore, respectively. "Looking at where we are and the uncertain environment, with no change in financial year 2015, we see credit cost to be around 70 basis points," said V Srinivasan, executive director, corporate banking at Axis Bank. 
 
Net non-performing assets rose marginally to 0.3% from 0.2% for HDFC Bank. 
 
"We have managed to maintain asset quality as we have avoided lending to some names and stayed away from groups that have been highly leveraged," said Paresh Sukthankar, deputy MD, HDFC Bank. There is an element of "growth and asset quality linked to the economic growth. The worst is behind us. Clearly we are off the bottom", he said.

ICICI, Axis & HDFC Bank Will Gain Most From Economic Revival, Say Analysts

New Delhi, Jul 3 () Wondering why the central bank should be answerable to a court on the basic principles of financial sector, eminent banker Deepak Parekh has said the saga of the Supreme Court questioning the RBI on loan moratorium was "indeed unfortunate". The Chairman of mortgage giant HDFC Ltd, in his annual letter to shareholders, also suggested a one-time restructuring of real estate loans, easing of external commercial borrowing rules and immediate changes in regulations to allow end-to-end execution of housing loans online. "The saga of the highest court of law questioning the RBI on the moratorium was indeed unfortunate. Why should a central bank have to be answerable to a court on basic principles which the financial sector operates on?" he observed. The industry veteran said interest payments on borrowings and loans are contractual obligations and when no laws are being violated then all efforts at this juncture must be channelled towards economic recovery rather than getting into legal wrangles. "These issues must be resolved smoothly and I remain hopeful that the authorities will find solutions to safeguard its stakeholders," he said. Last month, the Supreme Court said there is "no merit in charging interest on interest" for deferred loan payment installments during the moratorium period announced in the wake of the coronavirus pandemic. Once moratorium is fixed then it should serve the desired purposes and the government should consider interfering in the matter as it cannot leave everything to banks, the court had observed. The RBI's March 27 circular announcing moratorium was later modified on April 17 and May 23 by which the moratorium period was extended by another three months that is from June 1 to August 31, 2020 on payment of all installments in respect of term loans (including agricultural term loans and retail and crop loans). In the letter, Parekh lauded the RBI for shouldering a huge burden to maintain financial stability and also stressed the need for a realignment of ready reckoner rates as well. He said the global economy has never before simultaneously seen demand and supply evaporate and the pandemic has revealed the fragility of health systems and the lack of social safety nets the world over. At the same time, the lockdown has reinforced the value of the essentials of life -- food, clothing, shelter and now, the internet. "There can be no better security in life than a home... HDFC is in the right business and we have done business the right way. There may be lags in terms of healing time, but we remain confident that the inherent demand for housing is intact," he said. According to Parekh, FY20 has seen HDFC deliver a good performance, but by no means it was an easy year. Risk averseness in lending heightened, further choking credit where it was needed the most... We had our share of disappointments too. "These pertained to certain long-standing relationships we thought we were confident about. When hardships fell upon them, the legal system overrode our recovery efforts," he said. He said the recovery efforts will continue unabated. "In the most trying times, recent resolutions in our favour have been encouraging, sparking hope of a changing tide". Parekh further said a scenario is emerging where there may be inorganic opportunities for HDFC group companies and some of its subsidiary companies will need additional capital for their expansion plans. "We have also identified new investment opportunities that will help build the next generation of value creators for HDFC. To support this, we are putting in place a roadmap for our future capital requirements," he said. Parekh said woes of the Indian economy predate the pandemic and pressed for solutions that do not impinge on the limited resources of the government given the immense constraints on fiscal finances. He said the government has rightly recognised the benefits of encouraging housing, given the construction sector being the second largest employment generator and having multiplier effects through its extensive backward and forward linkages with other industries. "A few policy changes will go a long way in supporting housing and housing finance going forward," he said, while suggesting steps to liberalise external commercial borrowings and also a one-time restructuring for real estate loans. If developers do not have cash flows due to a slowdown in sales or delay in receiving requisite building approvals, they can neither complete the existing projects nor can they service their loans, he said. Even if a lender is willing to help the project stay viable, any modification in the terms of the loan, including additional funding is construed to be a non-performing loan under the current regulatory norms. "Allowing for a restructuring of these loans and categorising them as standard assets will facilitate last mile funding for these projects," he said. Parekh also favoured changes in regulations so as to facilitate end-to-end execution of mortgages online. "Currently, loans are being approved online, but disbursements cannot happen as e-signatures on mortgage documents or agreements pertaining to immovable properties are excluded from the purview of the Information Technology Act, 2000. "With the immense thrust on technology in the financial sector, this amendment can easily be facilitated through an ordinance," he said. BJ RAM

Why RBI should be answerable to court on basic financial sector principles: Parekh

<ul><li><keyword id="6357149" type="COMPANY" weightage="20" keywordseo="hdfc-bank">HDFC Bank</keyword>’s share price dipped by nearly 1% within hours of it making a new record for itself and crossing ₹8 lakh crore in valuation on November 25.</li><li>This makes India’s largest private sector lender bigger than the likes of <keyword id="158169" type="CITY" weightage="20" keywordseo="BlackRock">BlackRock</keyword> <keyword id="112859" type="CITY" weightage="20" keywordseo="Lockheed-Martin">Lockheed Martin</keyword> and <keyword id="6358584" type="UNKNOWN" weightage="20" keywordseo="HSBC">HSBC</keyword> on the US stock market.</li><li>HDFC Bank’s stock had already hit a fresh 52-week high on November 24, when the CLSA raised its target price. </li></ul>HDFC Bank crossed a new milestone as its market capitalisation hit ₹8 lakh crore ($108 billion) when the Indian exchanges opened on November 25, strengthening in place as India’s third most valuable company. Globally, this makes India’s largest private sector bank bigger than US behemoths like Lockheed Martin, HSBC and BlackRock. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Market valuation </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$108 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BlackRock </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$106.65 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Lockheed Martin </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$105.89 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HSBC </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$104.46 </td></tr></tbody></table>Source: BSE, NYSE as per today’s USD/INR conversion rate However, the euphoria was short-lived. By afternoon trade, the stock dipped by over 1% to ₹1424.75. This has brought its valuation back down to just under the ₹8 trillion mark at ₹7.92 trillion. Nonetheless, HDFC Bank is the first lender and the third Indian company — aside from Tata Consultancy Services (TCS) and Reliance Industries — to have hit this mark. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td colspan="2" style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top companies by market capitalisation: </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Market cap </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Reliance Industries </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹13.29 lakh crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Consultancy Services (TCS) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10.21 lakh crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹7.9 lakh crore </td></tr></tbody></table>Source: BSE Today’s surge comes after India’s latest private sector lender had already hit a fresh 52-week high yesterday. This after brokerage CLSA raised the target price of the lender to ₹1,700 this week. In addition, there was already an air of optimism around private sector banking stocks as the Reserve Bank of India (RBI) proposed new guidelines for ownership, including the possibility of increasing promoters’ stake from the current 15% to 26%. HDFC Bank has been one of the best performers over the last three months So far this year the stock has surged by nearly 14% despite the impact of the COVID-19 pandemic. The last three months, in particular, have been one of the best performing for the bank. HDFC Bank is among the seven financial companies <a href="https://www.businessinsider.in/stock-market/news/checkout-top-10-gainers-on-the-nifty-50-in-the-last-three-months/articleshow/79386155.cms">among the top 10 gainers on the NIFTY50 since September.</a> During the second quarter, the bank’s revenues were up by 15% as compared to last year at ₹21,868.8 crore. Its profits also increased by 18.4% year-on-year (YoY) to ₹7,513.1 crore. HDFC Bank has also been <a href="https://www.businessinsider.in/finance/banks/news/hdfc-bank-increases-provisions-for-bad-loans-as-impact-of-covid-19-continued-to-bear-down-in-second-quarter/articleshow/78719656.cms">cautious in its commentary</a> with the Supreme Court’s stay on declaring accounts as bad loans until the hearing on the RBI’s moratorium is complete. The bank’s management has said that there haven’t been any requests for restructuring granted as of October. However, they also highlighted that borrowers have until December to file their applications leaving room for the situation to change if warranted. SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/bank-employees-to-go-on-a-nationwide-strike-tomorrow-in-solidarity-with-farmers-protests/articleshow/79402946.cms">Bank employees to go on a nationwide strike on November 26 in solidarity with farmers’ protests</a> <a href="https://www.businessinsider.in/tech/apps/news/twitters-verification-badges-are-set-to-make-a-return-here-all-the-terms-and-conditions-of-how-to-apply/articleshow/79402586.cms">Twitter's coveted blue ticks are making a comeback next year along with new account types and labels</a> <a href="https://www.businessinsider.in/science/space/news/elon-musk-led-space-x-is-ready-to-conduct-the-first-major-test-of-its-starship-rocket-next-week-and-set-a-new-record/articleshow/79401235.cms">Elon Musk-led Space X is ready to conduct the first major test of its Starship rocket next week and set a new record</a> <a href="https://www.businessinsider.in/tech/apps/news/15-of-the-43-apps-india-banned-today-are-dating-apps/articleshow/79389714.cms">One-third of the latest Chinese mobile apps banned by India are dating services</a>

India's largest private sector bank is now bigger than the likes of Lockheed Martin, HSBC or BlackRock

You Searched For "hdfc bank loan restructuring application" and got 3 results

ICICI, Axis & HDFC Bank Will Gain Most From Economic Revival, Say Analysts

Economic Times

Why RBI should be answerable to court on basic financial sector principles: Parekh

PTI

India's largest private sector bank is now bigger than the likes of Lockheed Martin, HSBC or BlackRock

Prabhjote Gill

Popular Keywords

Buying Guides