PSU LENDER
Farm loan waivers to negatively impact banks' asset quality: Macquarie
Macquarie Capital warned that farm loan waivers could negatively impact banks' asset quality, particularly for public sector banks. States like Telangana, Jharkhand, and Punjab are either implementing or considering such waivers. Macquarie's Suresh Ganapathy highlighted that these waivers create moral hazards and deteriorate credit culture, as even reliable farmers might start defaulting.
Bank Nifty soars to a record high above 51,000
Private lenders drive Bank Nifty surge as traders cover bearish positions post breach of 51,000 level. Buying interest in banking stocks due to favorable risk-reward ratio.
Green shoots of rural recovery? Bet on these 3 sectors, says Jyotivardhan Jaipuria
Jyotivardhan Jaipuria says both the largecap and the smallcap segments look attractive. In areas where the capacities are in place, where they are running at low utilisation, if demand recovers, then huge operating leverage can be made, those are the companies which we are really focusing on.
Down but not out! 4 reasons why you shouldn't write off PSU stocks yet
Analysts are positive about PSU stocks post Lok Sabha elections, highlighting growth opportunities in Nifty PSU Bank stocks and government sectors. Valuation comfort, dividend yields, and growth potential make PSU stocks attractive for value investing.
Minister & Policy Continuity: Will it lead to re-rating getting sustained ? 7 stocks of railway’s ecosystem.
While it became clear on the day of the election result only that the same government is going to continue. Some doubts were raised as to whether there would be a shift in policy focus. A part of the answer has come in the form of portfolio allocation. Some of the key sectors which mattered to the street because they had seen a re-rating and valuations are high, the continuation with the same minister is an indication that government is clearly focussed on continuation not only with a policy focus but it also does not want to waste time in getting a new minister and spending time in him/ her understanding the core work. Now this should bring relief to some companies as their projected plans and workflow will continue. Which means that expected growth which the market has put in its estimates of earning has a high probability of continuing.
SBI m-cap crosses Rs 8 lakh crore mark as stock jumps 10%, hits 52-week high
SBI's market cap surpasses Rs 8 lakh crore as stock surges 10% to hit a 52-week high on exit poll optimism for Modi government's return. PSU bank stocks also soar, fueled by anticipation of government-driven growth.
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PSU banks, select HFC & NBFCs to see tailwinds in earnings in next few quarters & years: Anshul Saigal
Anshul Saigal, Founder of Saigal Capital, discusses the potential impact of the continuation of the current dispensation on the Indian market and the preference for individual investors over diversified portfolio managers. He mentions insights from a CIO poll regarding sector preferences, highlighting the lack of interest in FMCG and auto sectors.
Indian Bank plans to raise Rs 5,000 crore via equity & Rs 7,000 crore through debt
Indian Bank plans to raise Rs 5,000 crore in equity and Rs 7,000 crore through perpetual and infrastructure bonds. This move aims to strengthen capital base and finance infrastructure projects. Government's stake to decrease.
ETMarkets Fund Manager Talk: PSU banks trading at 40-50% discount to pvt banks, can outperform: Hardick Bora of Union Mutual Fund
Hardick Bora discusses the state of the PSU banks versus the private banks, Nifty 50 Index, Fair Value Spectrum, small and midcap funds, and asset allocation strategy for moderate risk profiles. Bora says: "An election outcome with continuity of the current administration may strengthen the sentiments of local as well foreign investors."
Bank of Maharashtra tops among PSU banks in business growth in FY24
Bank of Maharashtra, a state-owned lender, demonstrated impressive growth in total business and deposit mobilization during the last fiscal year, outperforming many public sector banks struggling to achieve double-digit growth. With a 15.94% rise in total business and a 15.66% increase in deposits, Bank of Maharashtra led the pack, followed by SBI. It maintained its dominance in low-cost CASA deposits, crucial for reducing fund costs.
Need to rationalise MSME schemes for reach: DFS Secretary
Speaking at the CII Annual Business Summit 2024 on Friday, Joshi also noted that there is a need to address language issues of schemes to make them easier and more comprehensible.
Markets moving away from consumption themes to investment themes: Manish Sonthalia
But otherwise, automobiles, banks, pharmaceuticals, capital goods they have all delivered on numbers. Metals and oil and gas was again supposed to be muted. So, I think all in all, the expectation of the result season from where we began the earnings season was a 5% to 6% earnings growth for this quarter.
SBI hikes FD interest rates but still less than what these 313 debt mutual funds have offered
SBI raises fixed deposit rates by up to 75 basis points, effective May 15, yet falls short compared to over 300 debt mutual funds offering higher annualized returns of 6.47% to 11.60%.
PSU banks' profit jumps over 4 times in 3 years to Rs 1.4 lakh crore in FY24
PSU banks' net profit skyrockets to Rs 1.4 lakh crore in FY24, driven by key factors like asset quality improvements, robust margins, and strong loan book growth. SBI emerges as a major contributor, showcasing a remarkable earnings turnaround.
Post-Covid capex pumps PSU muscles
A reappraisal of PSUs, however, could slow the longer trend of GoI getting out of business. And it needs to filter out the temporary effects of economic management. PSU banks are unlikely to retain their new-found health against private competitors for an extended period. Government capex, similarly, has a shelf life, after which private investment is expected to take over. That means companies borrowing from the cheapest lender, often from abroad, to build capacities. Neither consumption- nor investment-led growth assures a special place for PSUs. They will have to compete.
What's the new RBI proposal giving cold sweats to lenders?
The Reserve Bank of India (RBI) has proposed stringent new rules for project finance, aiming to minimize risks associated with long-gestation infrastructure projects. These regulations include higher provisioning during construction phases and classification of delayed projects as non-performing assets. However, banks and NBFCs fear these rules may hinder project viability and impede India's capital expenditure momentum.
No harm in taking some money off the table in power finance companies, PSU banks: Gurmeet Chadha
Gurmeet Chadha suggests investments in tier II banks, good NBFCs like Poonawalla UGRO. He discusses impacts on stocks like PFC, REC, IREDA due to RBI norms. Chadha also mentions the excitement around Aadhar IPO and counter cyclical investments in various sectors.
4 PSU stocks which are gig beneficiaries of the government focus on power, railways & infrastructure projects
What should a company which is lending both for short and long term but only to a particular sector be called. A “sectoral lender” or “term lending institution”. The obvious answer would be a sectoral lender. But the fact is that these are term lending institutions which come with its own advantages and disadvantages. The word “term lending institution” is not a word which many on the street would know or remember because this word was used a couple of decades back when ICICI, IDBI were not banks but term lending institutions. The difference between today’s PFC and IRFC of the world and old timer ICICI is that the PFC and IRFC are focussed in lending to a sector, whereas in old days, ICICI used to lend to different sectors. Another big difference is that PFC and REC have lower cost of capital as compared to term lenders like in the old days. Because some of these PSU lenders have come into public space recently, even analysts seem to be getting on the wrong foot by being less than optimistic.
PFC, REC shares fall up to 12%. CLSA says don't worry about impact of RBI norms
Shares of PSU financers PFC, REC, and IREDA tumbled up to 12% today as RBI raised provisioning requirements during the construction phase of projects from 0.4% to 5.0%. CLSA mentioned that while it doesn't anticipate an impact on the profit and loss account of PFC and REC, it could affect capital adequacy.
PSU bank stocks fall up to 6% as new RBI guidelines spoil mood
PSU bank stocks, including Canara Bank, Punjab National Bank, and Bank of Baroda, plunged up to 6% due to RBI's draft circular proposing stricter project financing guidelines.
Why Nifty Bank has underperformed Nifty50 in the past one year
Rallies in the markets may not present a clear picture of certain key developments. This is the very nature of the markets. A little bit of digging helps reveal stories which may not be apparent in the broad sentiment which engulfs the markets.
PSU lenders do not have the power to issue Look Out Circulars: Bombay HC
The Bombay High Court declared public sector lenders ineligible to issue Look Out Circulars (LOCs) under Central government office memoranda. While deeming this practice as 'arbitrary', the court upheld the constitutionality of the Central government's office memoranda. The ruling nullified all LOCs issued by public sector banks.
Why Kenneth Andrade is going contra, avoiding defence and PSU stocks
Kenneth Andrade, of Old Bridge Capital Management, emphasizes market breadth narrowing to specific stocks and commodity favoritism. He discusses challenges in the IT and defense sectors, PSU companies, and future businesses like Zomato and Paytm. Andrade says: "I am a firm believer that any company out there who gets pricing power will get price earning multiples. "
Big beneficiaries of government focus on sectors like power & railways: 4 PSU stocks with focus on sectoral lending
One segment where upward movement in stocks has been seen with much more skepticism than any other sector has been the government owned “term lending institutions” or what is commonly referred to as sector specific lenders like REC, PFC. There are multiple reasons for this skepticism, right from the fact that these stocks have either been market underperformers or at best market performers in some phases. So, when they move upward sharply, questions are bound to come. But is the historical bias against PSU making one overlook the underlying changes which a cleaner sectoral growth can bring to?
Stark divergence in projected returns of private and PSU banks in next one year: Will analysts again be caught on the wrong foot?
One sector where the street has been giving differential treatment for many years has been the banking space. Private banks were preferred over their PSU counterparts. But three years back, things started to change. Much loved private sector banks started to stagnate, both in terms of absolute price movement and also in valuations. It was not that immediately the PSU banks came into limelight, there was a phase of more than a year when both private and public sector banks were ignored. But then a year back it was PSU banks which got into limelight and since then have been doing well. But as they say, any kind of bias dont go away easily. Analysts estimates for next year's upside potential are far higher for private sector banks as compared to PSU banks. Possibly they are taking into account the fact that when the capex cycle takes upturn, which it has, PSU banks are much more likely to benefit as they have balance size and more importantly the mind set for that kind of lending.
5 PSU banks to reduce govt shareholding to meet MPS norms
Five public sector lenders, including Bank of Maharashtra, IOB, and UCO Bank, plan to decrease government ownership to under 75% to meet Sebi's minimum public shareholding (MPS) requirements. While four out of 12 public sector banks already comply, the remaining five are formulating plans to fulfill the MPS condition by August 2024. Financial Services Secretary Vivek Joshi highlighted that banks have options like follow-on public offerings or Qualified Institutional Placements to reduce government stakes.
PSU bank stocks outshine private peers
As state-owned lenders witness a on better asset quality and improved profitability, their shares have been topping the returns charts with several of them at multi-year highs, pushing behind private banks - the recent Dalal Street favourites.
Weakening bond yields give a fillip to PSU banks' rally
Analysts, however, say upsides in these shares could be limited because of rising credit costs and rich valuations. Shares of UCO Bank soared 15.23% to an all-time high of ₹60.65.
You can bank on these lenders for 3-4% profit
The election results seem to have given Nifty an adrenaline shot. It kept moving up and ended the day with a gain.
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