Stockrabit · Analysts
Questions across 19 calls

Param Subramanian

Nomura

The Federal Bank Limited

The Federal Bank Limited CC-Dec24.pdf · 2025-01-28
Hi, congratulations on the quarter and thanks for taking my question. Firstly, again on the provisioning rate, so on this 292 cr you called it accelerated, but if you could break it up, between how much was for the back group or how much is for the structurally higher PCR, because we are holding on to this 40 to 45 basis point of credit cost guidance rate, if we are going to be conservative in terms of provision going ahead also, how confident are we of retaining that credit cost guidance.
Secondly, Manian, this, you know, in the slide 6 of the presentation, we shown the risk adjusted NIMs, so it is down over the last two quarters. Of course, this quarter, y ou have been affected by the accelerated provision as well. Going ahead, if we are looking at an environment where rates will get cut and we have also added some risk on the book, right, unsecured and say that all this 5 percent of the overall book, so we have suggested margin is despite that. So, how we planning to manage overall margins and ROA going ahead, you know, in that context that, you know, rates might come down, maybe the cost of this is going up.
The Federal Bank Limited CC-Jun24.pdf · 2024-07-24
Yes, hi, good evening. Thanks for the opportunity. Firstly, Shyam, congratulations on a fantastic innings at the bank and congratulations on a great quarter as well. So, my first question is on the deposit growth again. Now, I think -- so if we look at your d eposit growth, you're tracking at 20%. Even quarter -on-quarter, it's very strong. The system is tracking at something like 11%. So you're growing at double that pace. So what are the -- what's driving this outperformance on deposit growth? I think in your initial commentary, you spoke about NR flows. The data you've given in the presentation, it's only showing 1% quarter-on-quarter on NR. So if you could expand on that. And between that and the new branches contributing, what's driving this outperformance? Yes, that's my first question.
Thanks, Shalini. That was really helpful. So it could be fair to say that this sort of 18% to 20% deposit growth is something that you think is sustainable, right?
The Federal Bank Limited CC-Mar24.pdf · 2024-05-02
Good evening and thanks for taking my question. First question is on provisioning. So we've -- this year the standard asset provisioning line has been INR 200 crores of write-backs. And I'm assuming it's coming from the restructured asset provisioning reversal. So just trying to get a sense on what is the PCR we have on the restructured assets? And we are seeing INR200 crores of reduction in this restructured portfoli o every quarter. Is that something that will continue going over the coming years? That's my first question.
So -- and Shyam, what is the provision cover we have on the restructured portfolio? And has it changed through the year?
The Federal Bank Limited CC-Dec23.pdf · 2024-01-16
Yes, hi. Thanks for the opportunity and congratulations on the quarter. My first question is on the unsecured piece. Shyam and team – hello…
My first question, Shyam, was on the unsecured. So after this RBI increase in risk weight. Has there been any rethink in our thought process when we're talking about scaling up the unsecured fees from, say, about 5% to say 10% of the book over the next 2, 3 years because that was something that we'd highlighted earlier. And also, there are some media reports saying that we are scaling down some partnerships in, say, credit cards. Is that just a one -off case or are we sticking to our guns as far as unsecured is concerned? That's my first question.

HDFC Bank Limited

HDFC Bank Limited CC-Dec24.pdf · 2025-01-22
Firstly, going back to priority sector. So last year, we had a shortfall in both SMF and weaker sections and the one-third requirement from HDFC Limited book. So, both of those PSL compliance will be completed by fourth quarter? Is that the way to look at it? And what proportion would roughly be RIDF within that? Yes.
Okay. Got it, Srini. So, a percentage point shortfall in both SMF and weaker sections. That's probably where we are currently on the merged book?

Kotak Mahindra Bank Limited

Kotak Mahindra Bank Limited CC-Dec24.pdf · 2025-01-18
Thanks for taking my question. Most of them have been answered, but just this one on prime , on Kotak Prime you mentioned there is a pickup i n the delinquency, whereas on the secured assets of the Bank we are very comfortable. So, what is driving this divergence in asset quality?
And in the last quarter we had made a comment saying that we expect credit card and microfinance delinquencies to largely be absorbed within two quarters , largely. Are we holding onto that sort of guidance?
Kotak Mahindra Bank Limited CC-Sep24.pdf · 2024-10-19
Firstly, again on the credit cost. So, in the fourth quarter, a couple of quarters ago, we had taken a big write off and we had explained that it was largely unsecured and credit card businesses. So, that pertain to the longer vintage unsecured NPLs, right, so what we are seeing now in this quarter is more pressure delinquency is of more recent vintage. Is that the way to look at it?
If I heard you correctly, Ashok, you said 270 days is when you write off unsecured retail, right? That is correct?
Kotak Mahindra Bank Limited CC-Dec23.pdf · 2024-01-20
Yes, hi. Thanks for the opportunity. Just one data keeping question. So, for the investment book, how is it split between GSec and non- GSec? Because the credit substitutes have gone up and you mentioned you manage margins by moving cash into credit substitutes. But at the same time, we maintain the LCR. So, if you could just explain how that happened?
Yes. Jamin, could you explain how the LCR has been maintained despite? Yo u said that the margins have been managed, the 15 bps drag on margins which was their last time has been managed.

Axis Bank Limited

Axis Bank Limited CC-Dec24.pdf · 2025-01-16
Firstly, on liquidity, so I think, Puneet, you made a comment saying that we don ’t see any extraneous constraint on LDR. So, I just wanted to understand if there is any change in the operating environment there and especially on LDR, do you look at or does the regulator look at the quarterly average or the closing period because we have been highlighting the quarterly average deposits? And on the LCR, are we operating assuming that the draft LCR guidelines will kick in going ahead because that's another constraint on loan growth?
One more question, if I may. So, based on the comments on seasonality, would it be fair to say that the PL and CC slippages are largely stable QOQ? And secondly, there is a large recovery from written-off in this quarter. Is there any one off over there?
Axis Bank Limited CC-Sep24.pdf · 2024-10-17
Yes, hi. Good evening. Thanks for the opportunity. My first question is on the contingent provisions made in the quarter, Rs 520 crores. I just wanted to ask again what is the need for making the provisions in this quarter? If we think there are no pressing asset quality issues, why are we making these provisions? Because provisions like these depress the profitability and the b ook value. And we also have significant buffers already, and no real visibility of when this will get written back?
Okay. Thanks for calling it out that way Puneet, yes that helps. Secondly, my question is on the LCR and again on the outflow rate. So the outflow rates, like you discussed, is down quarter-on-quarter. Just wanted to check if this regulatory driven because we had this news flow a few months ago about RBI doing LCR audit. If it is related to that, because for some of the smaller banks, we've seen a shift between the stable and the less stable deposits. And secondly, on the LCR again, how do we plan to -- with the new draft norms coming in, because we're at 115% now, which will probably take us closer to 100% when the new norms kick in. So what are the tools we have at our disposal to navigate the new loans, yes?
Axis Bank Limited CC-Mar24.pdf · 2024-04-24
Thanks for taking my question. Most of my questions have been answered. Just one on deposit growth. So if you see this year we closed at about 13% which is in line with the sector, 13% YOY. And even last year if we adjust for what we got from Citi we grew 10% YOY. So, of course, we have improved the quality of the franchise quite a bit and the out flow rates have come down, but do we start becoming a market share gaining entity from, say, next year onwards that you are talking about sectors growing at 13% deposit growth in FY25, what number would you have in mind for the Bank?
Okay. Fair enough. Thank you and all the best and congrats for the great quarter.
Axis Bank Limited CC-Dec23.pdf · 2024-01-23
Yes, hi. Thanks for the opportunity. My question again is on deposits. So historically, we have pointed out in the past that we are strong in the government business. And one of the reasons for the tighter liquidity is government money going out of the system. So when that money comes back, are we better placed compared to the rest of the system? Any sort of gearing you would like to highlight over there? Yes, that is my first question.
Perfect. That is really helpful. But could you provide any numbers in terms of market share? You did highlight that you have a significant market share, but market share percentage of your total deposits, say, contributed by the government business?

Yes Bank Limited

Yes Bank Limited CC-Sep24.pdf · 2024-10-26
My first question is on the margin profile. As we know, I think the broader outlook for interest rates is probably downwards from here. So in that context, considering we have a lower margin profile than our peers and currently a lower overall operating pr ofitability, what measures will be looking at to, say, improve or sustain this margin in the context of, say, moderating rates? That's question one.
Yes. Secondly, on the retail book, I can see we have a decent chunk of, say, unsecured retail credit cards, personal loans. So how is that book holding up at present? Some color on that would be great. That's it from me.

Bandhan Bank Limited

Bandhan Bank Limited CC-Sep24.pdf · 2024-10-25
Most of them have been answered. But on Slide 6, you ’ve given your loan mix and the last 2 years, we have seen a sharp increase in the retail loan mix. I think over the last 2.5 years, the number has gone up about 4x. So, if you could just remind us what are the products that contribute to this retail mix, which are the predominant products? Yes, that’s question 1.
Secondly, the credit cost guidance that you’ve given for the full year includes the write-back that we are going to get from CGFMU or how should we look at it?

AU Small Finance Bank Limited

AU Small Finance Bank Limited CC-Jun24.pdf · 2024-07-25
Congratulations on the merger. My first question is on the credit cost and along with that, the ROE guidance. So what I heard was that the 1.3% credit cost we've seen in this quarter, you're guiding that it will come down to 1.1% by the end of the year. We really need that to work because you are talking about the margin also moderating in order to meet the ROA guidance of 1.6%. How confident are we that this number will roll off because considering the credit cost or the write-offs we have seen, as you pointed out, is in segments like credit card , MFI where we are seeing the trendline moving upwards So yes, that's my first question.
Yes. Got that. So there's a couple of other questions on this. Since you there is some upside there possible on the ROA. -- so if you could quantify maybe if you worked out on the P SLC side, what kind of income can we generate post -merger? And also you took a Board approval for a capital raise. If you could talk a bit about that. Is there any plan around this because your Tier 1 is very healthy?
AU Small Finance Bank Limited CC-Sep23.pdf · 2023-10-30
Yes, hi. Thanks for the opportunity. Most of my questions relating to the merger have largely, largely been answered. So, just a couple of questions. Firstly, on this securitization, which you have done, you know, a large amount of securitization in this quarter. So, you've also had a very strong deposit growth, right? So, could you just explain the reason for the securitization? Your, CD ratio has come down and I'm also seeing the LCR has come down, quarter-on-quarter. So, you explained that securitization is helping you on the liquidity front. But I just wanted to understand, how you're looking at it from the perspective that you, despite having a strong 9% quarter-on-quarter deposit growth, you had to do such a large securitization. That's the first question. I'll come back to the second.
Yes, I get that. Just on this again, so your loan book had just grown 2% quarter-on-quarter, right? But your deposits have grown 9% quarter-on-quarter. So, does that imply, because if the average LCR has come down, does that imply that most of the deposits were back-ended because I still don't get how the LCR could have dropped?

ICICI Bank Limited

ICICI Bank Limited CC-Dec23.pdf · 2024-01-20
On the average CASA ratio, if we look at it quarter -on-quarter, we are not seeing any let up in the pace at which this is moderating. So, any indication on where you see this say bottom-out, starting to pick up or do we have to wait for a much more looser liquidity environment like you were alluding to earlier?
Just one more question again around this. How are we geared towards say government spend coming back, how much is that ? If you can give some direction number as a percentage of our deposit say so when that comes back, how does that help you in terms of CASA as well as overall deposits?