Banking

SECTOR ANALYSIS of INDIAN BANKING Industry

Banking Industry has cheered investor's confidence once again with the stronger set of returns for the quarter ended June 2010. The expected stronger results, Improved operating metrics and Government infusion of capital in the public sector banks have made investors bid high on the banking Industry. Aggregates of 40 banks have reported 26% jump in the Net Profit at Rs 15068 crore over robust 46% jump in the Net Interest Income (NII) at Rs 38513 crore.

With increase in the short term rates and recent policy hikes, many of the bank's in the mid of August have increased the lending (PLR) and deposit rates. Many banks have started mobilizing the deposits at higher rates and also CASA regime. However, we expect margins to sustain as loans get reprised faster than deposits. Thus sustainable margins with upward bias, Healthy credit demand and containment in the slippages and provisions will make Indian banking system stronger going ahead.

AXIS BANK

AXIS Bank is one of the fastest growing banks in private sector. The Bank operates in four segments, namely

1) Treasury, which include investments in sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading and foreign exchange operations on the account, and for customers and central funding

2) Retail banking, which includes lending to individuals/ small businesses subject to the orientation, product and granularity criterion. It also includes liability products, card services, Internet banking, automated teller machines (ATM) services, depository, financial advisory services, and nonresident Indian (NRI) services.

3) Corporate/ wholesale banking, segment which includes corporate relationships not included under retail banking, corporate advisory services, placements and syndication, management of publics issue, project appraisals, capital market related services, and cash management services.  

4) Other business which...