Nifty tad above 16,600; bank stocks decline

25 Jul 2022 , 10:30 AM

The domestic equity benchmarks tumbled and hit the days 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. Continuous selling by FIIs, mixed corporate earnings and the impending rate hike by the US Fed dented the investor sentiment. Results Today: 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. Buzzing Index: 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 banks 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 banks 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. Powered by Capital Market – Live News