Profits were sharply below expectations as provisions jumped 2.5 times QoQ to Rs 16,502 crore.
Core sector growth in January slowed down to 1.8 per cent against 2.7 per cent on a sequential basis.
Bandhan bank reported profit of Rs 331 crore a growth of 10.3 per cent YoY.
The recapitalisation of state-owned banks will help them meet their provisioning needs.
A close look at the consumption trends suggests that largely the consumption demand remains strong in economy.
Q2 corporate earnings have been better than that of Q1 and there has been some pickup in IIP.
Indusind bank has been trying to grow the MFI book since last 5 years and the MFI book stands at nearly Rs 3,000cr, which forms about 2.5-3% of its existing loan book.
Net interest income is expected to have grown to Rs 5,329 cr down 2.3% YoY for the quarter ended December 31 compared with Rs 5,453 cr in the last fiscal.
The company has a gross debt of about Rs 5400 crore and net debt of about Rs 4000 crore. It recently sold its non core camping business in a bid to reduce debt.
A quick back of the envelope calculation suggests that at CMP of Rs 142/share, IDFC will be looking for a post issue share dilution of about 3.6-4.4%.
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