External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>Elevated provisions are a RoA dampener – IDFCFB’s provisions were significantly higher on account of prudent provision buffer of Rs 568 Cr created for microfinance business (to the tune of Rs 315 Cr, which equals 99% of SMA1+2 portfolio) and one legacy infrastructure toll road account with the Maharashtra Government withdrawing toll charges at Mumbai Entry Point, which adversely affected the infra customer (to the tune of ~Rs 250 Cr).</li><li>Excluding the provision buffer created on the microfinance and the legacy toll account, credit costs would have been at ~1.8% (vs 1.7% in Q1FY25), largely within the guided range.</li><li>Microfinance continues to remain a pain point with slippages elevated in Q2 and credit costs climbing up to ~6% in H1FY25. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Elevated provisions are a RoA dampener – IDFCFB’s provisions were significantly higher on account of prudent provision buffer of Rs 568 Cr created for microfinance business (to the tune of Rs 315 Cr, which equals 99% of SMA1+2 portfolio) and one legacy infrastructure toll road account with the Maharashtra Government withdrawing toll charges at Mumbai Entry Point, which adversely affected the infra customer (to the tune of ~Rs 250 Cr).Excluding the provision buffer created on the microfinance and the legacy toll account, credit costs would have been at ~1.8% (vs 1.7% in Q1FY25), largely within the guided range.Microfinance continues to remain a pain point with slippages elevated in Q2 and credit costs climbing up to ~6% in H1FY25. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IDFC First Bank Ltd - Elevated Provisions Dent Earnings, RoA Improvement Delayed!

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>Following SEBI's review of eligibility criteria for entry/exit of stocks in the derivatives segment, there could be 18 deletions/79 inclusions in the F&amp;O segment over the next 6 months.</li>
<li>The introduction of some stocks in the F&amp;O segment could lead to their inclusion in the <a href="https://www.smartkarma.com/entities/nifty-index" target="_blank" data-smartkarma-citation="entities:23617:1" rel="noopener">NIFTY</a>, <a href="https://www.smartkarma.com/entities/s-p-bse-sensex-index" target="_blank" data-smartkarma-citation="entities:31494:1" rel="noopener">SENSEX</a>, <a href="https://www.smartkarma.com/entities/nse-nifty-bank-index" target="_blank" data-smartkarma-citation="entities:26811:1" rel="noopener">Nifty Bank</a> and CNXIT indices and weight changes in the <a href="https://www.smartkarma.com/entities/nse-nifty-next-50-index" target="_blank" data-smartkarma-citation="entities:36053:1" rel="noopener">Nifty Next50</a>.</li>
<li>The inclusion of stocks in indices with a fixed number of constituents will result in deletion of some stocks from these indices. There should be methodology changes too.</li>
</ul>


Following SEBI's review of eligibility criteria for entry/exit of stocks in the derivatives segment, there could be 18 deletions/79 inclusions in the F&amp;O segment over the next 6 months.
The introduction of some stocks in the F&amp;O segment could lead to their inclusion in the NIFTY, SENSEX, Nifty Bank and CNXIT indices and weight changes in the Nifty Next50.
The inclusion of stocks in indices with a fixed number of constituents will result in deletion of some stocks from these indices. There should be methodology changes too.


India: Index Implications of Additions to the F&O Segment

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>IDFC First Bank (IDFCFB) reported a 1QFY25 PAT of INR6.8b (-11% YoY, in line) dragged down by elevated provisions.</li><li>NII grew 25% YoY to INR46.9b (in line), while margin contracted 13bp QoQ to 6.22%.</li><li>Opex grew 21% YoY to INR44.3b (5% better than MOFSLe).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IDFC First Bank (IDFCFB) reported a 1QFY25 PAT of INR6.8b (-11% YoY, in line) dragged down by elevated provisions.NII grew 25% YoY to INR46.9b (in line), while margin contracted 13bp QoQ to 6.22%.Opex grew 21% YoY to INR44.3b (5% better than MOFSLe).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IDFC First Bank - Elevated Credit Cost Drags Down Earnings

<ul><li>Operational Performance: Advances growth was healthy at 21/4% YoY/QoQ, led by retail assets (+47/4% YoY/QoQ).</li><li>The growth in corporate and infrastructure lending was muted at 5/3% and -29/1% YoY/QoQ respectively.</li><li>Retail asset growth was driven by Housing (+22/10% YoY/QoQ), Wheels (33/5% YoY/QoQ), Consumer Loans (+35/5% YoY/QoQ) and Credit Cards (+53/7% YoY/QoQ). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Operational Performance: Advances growth was healthy at 21/4% YoY/QoQ, led by retail assets (+47/4% YoY/QoQ).The growth in corporate and infrastructure lending was muted at 5/3% and -29/1% YoY/QoQ respectively.Retail asset growth was driven by Housing (+22/10% YoY/QoQ), Wheels (33/5% YoY/QoQ), Consumer Loans (+35/5% YoY/QoQ) and Credit Cards (+53/7% YoY/QoQ). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IDFC First Bank Ltd.  - RoA Improvement to 1.4% by FY27E In Sight, Maintain BUY!

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

<ul>
<li>Credit metrics continue to improve, with NPLs down to INR404bn in 1Q25 from INR458bn YoY and from INR407bn QoQ</li>
<li>Net loan growth continues to rise by about INR1tr each quarter, with net loans at INR9,465bn in 1Q25 up from INR8,554bn YoY and INR9,318bn QoQ</li>
<li>There are pressures on costs and margins, so the story is not all perfect, with NIM pressure potentially to reverse as LDR expands</li>
</ul>


Credit metrics continue to improve, with NPLs down to INR404bn in 1Q25 from INR458bn YoY and from INR407bn QoQ
Net loan growth continues to rise by about INR1tr each quarter, with net loans at INR9,465bn in 1Q25 up from INR8,554bn YoY and INR9,318bn QoQ
There are pressures on costs and margins, so the story is not all perfect, with NIM pressure potentially to reverse as LDR expands


Canara Bank - Bad Debt Charges Down in the Quarter, Net Loan Growth Nearly INR1tr YoY in 1Q25

India

IDFC First Bank is an Indian private sector universal bank offering a comprehensive suite of products and services across retail, MSME, rural, startups, corporate banking, cash management, credit cards, and wealth management. The bank provides savings and current accounts, fixed deposits, various loans, and investment solutions. It is headquartered in Mumbai, Maharashtra, India, and was founded in October 2015.

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IDFC First Bank (IDFCFB IN)

IDFC First Bank Ltd - Elevated Provisions Dent Earnings, RoA Improvement Delayed!

Elevated provisions are a RoA dampener – IDFCFB’s provisions were significantly higher on account of prudent provision buffer of Rs 568 Cr created...

Axis Direct

India: Index Implications of Additions to the F&O Segment

With 79 stocks potentially added to the FnO market in the next few months, there will be a lot of changes for the NIFTY, NEXT50, NSEBANK, CNXIT,...

Brian Freitas

IDFC First Bank - Elevated Credit Cost Drags Down Earnings

IDFC First Bank (IDFCFB) reported a 1QFY25 PAT of INR6.8b (-11% YoY, in line) dragged down by elevated provisions. NII grew 25% YoY to INR46.9b (in...

Motilal Oswal

IDFC First Bank Ltd. - RoA Improvement to 1.4% by FY27E In Sight, Maintain BUY!

Operational Performance: Advances growth was healthy at 21/4% YoY/QoQ, led by retail assets (+47/4% YoY/QoQ). The growth in corporate and...

Axis Direct

Canara Bank - Bad Debt Charges Down in the Quarter, Net Loan Growth Nearly INR1tr YoY in 1Q25

Canara Bank continues to see improvements in credit metrics. Less focus on MSMEs and more on retail can support this. LDR contract QoQ may reverse...

Daniel Tabbush

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