20/10/26, PostMarket REPORT

Indian benchmark indices snapped their two-day winning streak and witnessed heavy selling on October 19, amid elevated crude oil prices, weak global cues and selling in private banking stocks following disappointing earnings.

 At close, the Sensex was down 876.37 points or 1.17 percent at 73,852.90, and the Nifty was down 257.20 points or 1.11 percent at 22,888.95.

The broader markets also remained under pressure with Nifty midcap and smallcap indices fell 1 percent each.

Except PSU Bank (gained 2.2%), all other sectoral indices ended in the red with FMCG index down 1.2%, IT index down 1.3% and Private Bank index shed 1.8 percent.

Among individual stocks, shares of HDFC Bank gained 2% after Q2 earnings, while Urban Company declined 9% after its Q2 consolidated loss widened.

"The benchmark indices witnessed profit booking at higher levels, with the Nifty ending 257 points lower and the Sensex down by 876 points. Among the sectors, the Private Bank Index lost the most, declining 1.85 percent, whereas the PSU Bank Index outperformed despite weak market sentiment, rallying 2.50 percent," said Shrikant Chouhan, Head Equity Research, Kotak Neo.

"Technically, after a muted opening, the market faced consistent selling pressure at higher levels throughout the day. On the daily charts, after a strong uptrend rally it has formed a long bearish candle, indicating temporary weakness from the current levels."

"For day traders, 23,050/74500 will act as a key trend level. As long as the market trades below this level, weak sentiment is likely to continue. On the downside, the market could retest the 22,750–22,700/73500-73300 zone. On the flip side, if the market moves above 23,050/74500, sentiment could improve, and it may rally towards 23,150–23,200/74800-75000," he added.

On Monday, the Indian rupee ended marginally higher at 94.92 per dollar, extending its winning streak to a seventh consecutive session, compared with the previous close of 94.95.

“The Indian rupee extended its appreciation streak for the seventh consecutive session, closing marginally higher after surrendering most of its intraday gains,” said Dilip Parmar, Research Analyst, HDFC Securities.

“The recovery in crude oil prices and profit booking in domestic equities ahead of Tuesday's market holiday limited the currency's upside. Meanwhile, RBI intervention and a stable US dollar provided support to the rupee.”

“Technically, the spot USDINR is expected to find support at 94.70, while resistance is placed at 95.50,” he added.

Source: BSE,  NSE,  Moneycontrol

20/10/26, PROTESTS ERUPT ACROSS EUROPE

Violence has also erupted elsewhere. In the wealthy northern Italian city of Milan, police clashed on Sunday with protesters hurling stones and looting stores during demonstrations over poor public services and rising living costs.

In Gela, on Sicily's southern coast, farmers say fuel costs have made operating machinery prohibitively expensive. "We cultivate the land, we harvest debts," said one banner.

"We are completely at a standstill," said Arcangelo Gambino, a farmers' representative in Caltanissetta province. "The (fuel) cost has more than doubled."

Roadblocks by truckers, farmers and steelworkers have disrupted transport across parts of southern Italy, contributing to local fuel shortages and concerns over supermarket supplies.

Tens of thousands marched through Lisbon on Saturday over low wages, housing costs and the rising cost of living, increasing pressure on Portugal's centre-right government.

In Spain, the eviction of an 87-year-old woman from her home sparked nationwide demonstrations over housing shortages and soaring rents, helping trigger a snap election next month.

Belgium has also seen demonstrations, while large rallies in Albania have been driven by anger over perceived government corruption, a lack of jobs and poor education standards.

The protests reflect broader economic anxieties that are increasingly shaping politics across the continent.

Concerns about purchasing power have become "a major driver of populist politics" across Europe, said Gilles Ivaldi, a political scientist at Sciences Po.

Politicians on both the hard right and hard left have increasingly argued that restoring energy ties with Russia would help lower costs, challenging Europe's mainstream consensus on support for Ukraine.

LE PEN MAKES FUEL PRICES A CAMPAIGN ISSUE

The latest energy shock comes after years of economic strain following the pandemic and the fallout from Russia's 2022 invasion of Ukraine.

In France, rising energy costs have provided an explosive backdrop to next April's presidential election. Macron's government is struggling with a ballooning budget deficit and pressure from bond markets.

Frontrunner Marine Le Pen of the far-right National Rally and hard-left veteran Jean-Luc Melenchon have both made fuel prices central planks in their campaigns.

“Rising fuel prices are clearly an issue that boosts Marine Le Pen,” said Ivaldi. “I think this is an issue she has owned for quite some time."

Since the Iran war began, Le Pen's ratings have improved while Macron's have slipped, according to polling by Elabe.

Le Pen's proposal to sharply cut value-added tax on fuel has attracted broad public support. Analysts say the issue resonates strongly with her core voters in rural and semi-rural areas where car travel is often essential.

CALLS TO RESTORE RUSSIA TIES

In neighbouring Germany, the Alternative for Germany (AfD) is leading national opinion polls after strong gains in local elections. The cost of living topped Germans' concerns for a fifth straight year in a survey published this month.

German inflation spiked to nearly a three-year high in September, with energy price inflation rising to 14.9%, handing ammunition to the AfD to attack Chancellor Friedrich Merz.

The AfD is pushing to restore energy ties with Russia, arguing that Berlin's support for Ukraine is needlessly self-sabotaging at a time when Europe's largest economy and many of its energy-hungry companies are struggling.

Past experience indicates a link between high energy prices and voter turnout for the AfD, said Jan Steckel, professor for the political economy of climate change at the Technical University of Munich.

“Populist parties often frame energy costs as avoidable and attribute them to government policy choices ... rather than to the underlying geopolitical shocks that drive them," he said.

“These geopolitical shocks are ... much more difficult to explain. And I think this is why incumbent parties often struggle."

The argument is gaining traction elsewhere.

In Italy, Prime Minister Giorgia Meloni faces growing competition from National Future, a new far-right party led by former army general Roberto Vannacci that advocates restoring gas links with Russia.

In Poland, one of Ukraine's staunchest supporters, concern over energy bills is helping boost support for the far-right Confederation of the Polish Crown. Its leader, Grzegorz Braun, has called for a return to buying Russian oil and gas, making the case alongside AfD politicians in Lubmin, where the damaged Nord Stream pipelines land in Germany.

“I love the smell of Russian gas in the morning,” he said.

Report by Reuters 

Source : Network18 

20/10/26, Reuters on Europe Situations

The tractors rolling into the town of Gela on the southern tip of Europe are flying the Sicilian flag, emblazoned with Medusa, three bent legs and ears of wheat, a reminder of the island's role as a breadbasket since Roman times.

But the farmers are not bringing in a harvest. They are protesting.

As soaring fuel prices squeeze household budgets and businesses across Europe, cost-of-living pressures are driving unrest and giving fresh momentum to far-right parties ahead of elections next year in countries including France, Italy and Poland.

Parties once considered fringe had already been gaining ground, with voters from motorists in rural France to young men in Germany's former Communist east looking for alternatives.

The US-Iran war, which erupted in February and sent energy prices sharply higher, has compounded the challenge for governments already struggling to contain inflation, support growth and rein in spending.

The discontent has spilled onto the streets.

In France, demonstrations that began over deteriorating school facilities in Paris' northern suburbs have morphed into some of the country's worst unrest in decades, with shops looted, buildings torched and a 19th-century town hall in Limoges set on fire.

"Why am I here? Well, quite simply, I find the current cost of living truly terrifying," said Quentin Leviloux, a 21-year-old protester in Nantes.

"Just think of people who earn barely the minimum wage, when you look at the cost of food, fuel, and everything else. It's terrifying how incredibly expensive things have become."

The European Commission estimates the Iran conflict has cost Europe roughly €100 billion ($112 billion) through disrupted trade and energy markets. Gas prices have jumped about 140% and diesel prices have doubled.

In a weekend address, French President Emmanuel Macron acknowledged the "legitimate demands" of protesters angered by rising living and fuel costs, while condemning those responsible for violence and looting. "We must never confuse them with those who destroyed, vandalised and looted," he said.

Source: Network18 

20/10/26,UltraTech Cement

UltraTech Cement reported a 21.3% year-on-year (y-o-y) increase in net profit attributable to the parent for the quarter ended September 30, driven by higher sales volumes and improved operating performance. Net profit rose to Rs 1,494 crore from Rs 1,232 crore in the corresponding quarter of the previous fiscal. However, the bottom line fell short of the Bloomberg consensus estimate of Rs 1,604 crore.

Revenue for the July-September quarter rose 18.8% y-o-y to Rs 23,295 crore, beating the Bloomberg estimate of Rs 22,342 crore.

Operating earnings before interest, tax, depreciation and amortisation (Ebitda) increased 20.3% y-o-y to Rs 3,721 crore, marginally ahead of the Bloomberg estimate of Rs 3,701 crore. Including other income of Rs 111 crore, Ebitda stood at Rs 3,832 crore.

Operating Ebitda per metric tonne improved by Rs 60 y-o-y to Rs 974, against Rs 914 in the corresponding quarter last fiscal.

Consolidated cement sales volumes rose 12.9% y-o-y to 38.22 million tonne during the quarter. Domestic grey cement volumes grew 13.8% to 35.94 million tonne from 31.58 million tonne a year earlier.

“Domestic grey cement sales volumes rose robust 13.8% to 35.94 million tonne, from 31.58 million tonne in Q2 FY26, supported by disciplined execution, a wider market footprint, cost optimisation and a sharper focus on premium products,” the company said.

Capacity utilisation improved to 71% from 66% in the year-ago quarter, indicating stronger demand and better utilisation of its manufacturing network.

Sales realisation, or revenue per metric tonne, rose 2% y-o-y to Rs 5,176. However, it declined 0.8% sequentially from Rs 5,218 in the June quarter.

Grey cement fuel costs increased 14% y-o-y to Rs 1,030 per tonne, while power costs declined 12% to Rs 337 per tonne. Packaging costs rose 30% to Rs 216 per tonne.

UltraTech’s renewable power capacity stood at 1.58 gigawatts during the quarter, up 29% y-o-y.

Its domestic grey cement capacity stood at 204.7 million tonnes per annum (mtpa) at the end of the quarter on a consolidated basis.

“During the quarter, the company commissioned 3.6 mtpa greenfield integrated capacity at Petnikota, Andhra Pradesh, and added 1.0 mtpa through debottlenecking at its existing cement plants at Visakhapatnam, Patratu and Nathdwara,” the company said.

Including 5.4 mtpa of overseas capacity, UltraTech’s global grey cement capacity reached 210.1 mtpa. The company remains on track to expand its global grey cement capacity to more than 240 mtpa by March 2028 under its organic capital expenditure programme.

For FY27, UltraTech plans to add 16.3 mtpa of capacity, including 9.3 mtpa through greenfield projects, with the remainder coming from brownfield expansion. A further 29.8 mtpa of capacity addition is planned for FY28.

UltraTech also made a foray into the cables and wires business during the quarter, launching the UltraVolt brand. Capital expenditure on the new business has so far reached Rs 1,100 crore, against the Rs 1,800 crore investment commitment announced when the initiative was unveiled.

“The overall planned capacity, entailing the consumption of 78000 mt of copper and 24000 mt of Aluminium, already positions the company as the second largest player in terms of capacity in the housing wires segment. The launch has received an overwhelming market response,” it added.

Written by Urvi Malvania 

Source : Financial Express

20/10/26, HAPPY DASSARA

Today is Market Holiday

19/10/26, Closing Bell Snaps

 

19/10/26, Axis Bank Monthly Graph

19/10/26, Axis Bank Q2

Axis Bank shares plunged 4 percent on Monday, emerging as the top loser on both the Nifty 50 and Bank Nifty following the private sector lender's mixed second-quarter earnings. While brokerages remained broadly positive on the stock's outlook, concerns over pressure on margins, elevated operating expenses and a rising loan-to-deposit ratio weighed on sentiment.

Axis Bank stock fell to Rs 1,238 in morning trade, extending its year-to-date decline to 3 percent, compared with an 11.5 percent fall in the Nifty 50. The bank's market capitalisation stood at approximately Rs 3.86 lakh crore

 The decline came after Axis Bank reported a 37.6 percent year-on-year increase in net profit to Rs 7,003.3 crore for Q2 FY27, below the CNBC TV18 poll estimate of Rs 7,132 crore. Net interest income (NII), however, rose 11.8 percent to Rs 15,371.4 crore, exceeding the estimate of Rs 14,970 crore.

The bank's net interest margin (NIM) stood at 3.36 percent, although the figure was 3.47 percent excluding the impact of FCNR-B deposits. Asset quality improved, with the gross NPA ratio declining to 1.16 percent from 1.46 percent a year earlier, while the net NPA ratio fell to 0.35 percent from 0.44 percent.

Axis Bank stock ratings, target prices

Jefferies, JPMorgan, Citi and Bernstein maintained positive recommendations on Axis Bank, although their assessments of underlying earnings quality differed.

Jefferies: Buy, target price Rs 1,700

Jefferies maintained its Buy rating on Axis Bank with a target price of Rs 1,700, implying approximately 32 percent upside from Friday's closing price of Rs 1,290. The brokerage said the bank's core performance exceeded its estimates, supported by stronger revenue and lower provisions. It viewed stable sequential core margins positively, although the drag from FCNR-B deposits was slightly greater than anticipated. Jefferies expects improving margins, lower credit costs and a rebalancing of the loan portfolio to support higher return on equity next year.

JPMorgan: Overweight, target raised to Rs 1,620

JPMorgan raised its target price on Axis Bank to Rs 1,620 from Rs 1,590, retaining its Overweight recommendation. The brokerage said the bank's quarterly earnings exceeded its estimates, aided by stronger NII and lower credit costs. It highlighted healthy loan growth, a marginal recovery in core NIM excluding the FCNR-B impact, and improving asset quality. JPMorgan also cited attractive valuations as a key factor supporting its positive outlook.

Citi: Buy, target price Rs 1,620

Citi maintained its Buy rating on Axis Bank with a target price of Rs 1,620. The brokerage said the headline NIM was affected by FCNR-B deposits, while underlying margins remained stable. It highlighted a sequential moderation in slippages and credit costs, alongside resilient asset quality. Citi also noted its credit growth outpaced industry growth, but flagged elevated operating expenses as a drag on pre-provision operating profit.

Bernstein: Outperform, target price Rs 1,600

Bernstein maintained its Outperform rating on Axis Bank with a target price of Rs 1,600, implying approximately 24 percent upside from Friday's close. The brokerage described the Q2 performance as mixed, saying that a 52 percent year-on-year decline in credit costs supported 37 percent growth in earnings per share, even as underlying operating trends remained weak. Bernstein highlighted strong corporate-led loan growth, which pushed the loan-to-deposit ratio to approximately 95 percent. It also flagged margin compression from FCNR-B deposits, weaker net operating income and higher operating expenses as concerns.

Written by Shaleen Agrawal

Source: Network18

Disclaimer: The views and investment tips expressed by experts here are their own and not those of us. We advise readers&traders to check with certified experts before taking any investment decisions.

19/10/26, The Indian rupee opened higher against the US dollar on October 19, with the central bank's dollar sales expected to support the currency and keep it near what traders perceive to be the central bank's soft defence line.

The rupee extended its gains on seventh consecutive day and opened higher by 9 paise at 94.86 per dollar, compared with Thursday's close of 94.95.

According to Finrex, the rupee is expected to open flat this morning (around (94.94) with oil prices slightly down after Trump did not apply tariffs on India, China and 3 other countries for buying Russian oil.

Dollar Index was a tad up at 101.79 this morning, moving with a range of 101.50 to 102. We expect some inflows from the JIO IPO whose anchor investors portion is opening for subscription this morning.

Exporters to sell near to 95.10 and take advantage of the higher forward premiums. Importers to wait for lower levels of 94.50 so that higher forward premiums could be absorbed by the lower spot, it added.

Asian currencies traded mixed against the US dollar, with the Indonesian rupiah recording the biggest decline, falling 0.49 percent. The Philippine peso and Taiwan dollar also weakened by 0.27 percent each, while the South Korean won slipped 0.13 percent.

On the other hand, the Japanese yen strengthened 0.08 percent, followed by the Chinese renminbi, which rose 0.06 percent. The Thai baht and Malaysian ringgit edged higher by 0.06 percent and 0.03 percent, respectively, while the Singapore dollar eased 0.04 percent.

The dollar edged up from near its lowest levels of the month at the start of trading in Asia on Monday as violent protests in France put pressure on the euro.

The euro fell 0.1% at $1.1225 as trading began in Asia. The biggest weighting in the dollar index, the common currency's drop helped steady the greenback, which traded level at 101.83.

Source: Moneycontrol, Network18 

19/10/26, INDEX LEVELS

SENSEX

NIFTY 50

NIFTY BANK 

18/10/26, about Commodities Market

Sticky inflation, uncertainty around the Federal Reserve's policy path, and a sharp pullback in technology stocks shaped global market sentiment this week, while renewed attacks on Gulf shipping routes pushed energy prices to their highest levels in five months.

The US Dollar Index ended the week at 101.77, down 0.4 percent, after briefly touching an 18-month high of 102.9. September CPI data showed headline inflation accelerating to 3.7 percent year-on-year from 3.4 percent, driven by higher energy costs, while core inflation rose 0.3 percent month-on-month against expectations of 0.2 percent. Despite the inflation surprise, the dollar's gains faded as a selloff in AI and semiconductor stocks triggered a rotation into government bonds, easing Treasury yields.

Fed Chair Kevin Warsh refrained from offering fresh policy guidance at the IMF and World Bank meetings in Bangkok, helping ease concerns of consecutive rate hikes. Fed officials continued to send mixed signals. John Williams supported one additional rate hike this year, Austan Goolsbee described the inflation data as discouraging, Beth Hammack warned further tightening may be needed if inflation expectations rise, while Michelle Bowman saw no immediate urgency to act.

Combined with softer labour market data, markets are now pricing roughly a 20 percent chance of a rate hike in October and close to a 90 percent probability in December. US equities ended mixed, with the Dow Jones posting gains while the S&P 500 fell nearly 2 percent and the Nasdaq declined 4.5 percent amid broad weakness in technology shares.

Precious metals came under pressure after the stronger-than-expected inflation print. Spot gold fell to a two-month low of $4,073 per ounce and silver dropped to $55.4 per ounce, its weakest level since July. Both metals later recovered as the dollar retreated toward a two-week low and investors increasingly expected the Fed to leave rates unchanged this month. Gold rebounded to $4,198 an ounce and ultimately settled near $4,165 an ounce, while silver closed around $57 an ounce, down roughly 6 percent for the week as markets balanced expectations of a policy pause against the likelihood of a December rate hike

Gold futures remain under pressure, trading below the 20-day EMA and Supertrend, indicating a weak near-term trend. Immediate support is placed at Rs 1,45,600 per 10 gram, and a sustained break below this level could drag prices towards Rs 1,43,350. On the upside, resistance is seen at Rs 1,50,000, followed by Rs 1,51,600; a sustained breakout above Rs 1,50,000 could improve the outlook.

Crude oil was the week's strongest performer, ending near five-month highs as geopolitical tensions and supply disruptions outweighed demand concerns. Brent largely traded between $104-107 a barrel, with gains capped after OPEC lowered its 2026 demand growth forecast and the IEA widened its projected demand contraction amid elevated prices and supply constraints.

However, Brent surged to settle at $109.86 a barrel on Friday, up 3.7 percent on the day and marking its highest close since May. The rally was driven by mounting supply risks, including attacks on vessels near the Strait of Hormuz, threats to Saudi export infrastructure and Ukrainian strikes on Russia's Ryazan refinery.

Tight diesel markets further supported prices, with inventories remaining critically low ahead of winter. The WTI-Brent spread narrowed from above $12 a barrel, its widest level in 11 years, to around $8 a barrel after a more than 8-million-barrel decline in US crude inventories boosted WTI, which gained nearly 11 percent for the week.

Base metals remained under pressure as inflation concerns and weaker risk appetite weighed on demand. Copper drifted toward $14,300 per tonne despite a mixed supply backdrop. An avalanche at Codelco's El Teniente mine temporarily disrupted operations, although the impacted area accounts for less than 10 percent of the mine's output. Aluminium touched an eight-month low, while zinc fell 3 percent, making it the weakest performer among base metals.

Looking ahead, China's third-quarter GDP and industrial production data will be key catalysts for commodity markets. Strong readings could reinforce confidence in recent stimulus measures and support industrial metals, while weaker figures may deepen concerns over underlying demand.

Attention will also turn to flash PMI releases from the US, Eurozone, Germany and the UK, with investors focusing closely on price and employment components for clues on inflation trends. For precious metals, movements in the dollar and Treasury yields are expected to remain the primary drivers. For copper, a preliminary agreement at Antofagasta's Centinela mine that averted a prolonged strike may lead to a weak start, leaving demand signals from China as the key driver.

For crude oil, developments around Hormuz shipping routes, Saudi energy infrastructure and tanker sanctions will remain critical. Additionally, the White House's decision to delay certain Russia-related sanctions could allow more Russian crude to reach global markets, potentially moderating further upside despite ongoing geopolitical risks.

Report by Kaynat Chainwala,  Network18

YES BANK Q2

Private sector lender Yes Bank reported a 65% year-on-year rise in standalone net profit to Rs 1,080 crore for the second quarter of FY27, driven by higher net interest income and lower provisions. However, the results do not reflect the potential financial impact of the Supreme Court's ruling on the bank's write-down of Additional Tier-1 (AT1) bonds worth Rs 8,415 crore. The bank's pro forma disclosure indicated a potential net loss of Rs 5,217 crore for the quarter if the estimated impact were recognised.

Net profit rose from Rs 654 crore in the year-ago quarter and was up 0.8% sequentially from Rs 1,071 crore in Q1FY27. For the first half of FY27, profit increased 47.8% to Rs 2,151 crore from Rs 1,456 crore a year earlier.

Net interest income (NII) rose 22.7% year-on-year to Rs 2,822 crore from Rs 2,301 crore, while interest income increased 17.1% to Rs 8,640 crore. Interest on advances grew 17.2% to Rs 6,600 crore, while interest expenses rose 14.6% to Rs 5,817 crore.

Operating profit before provisions and contingencies increased 29.4% to Rs 1,678 crore. Provisions and contingencies fell 24.2% year-on-year to Rs 317 crore from Rs 419 crore and were down 19.5% sequentially. Other income rose 14.4% to Rs 1,882 crore.

Deposits and asset quality

Advances grew 23.7% year-on-year to Rs 3.10 lakh crore as of September 30, while deposits rose 19.5% to Rs 3.54 lakh crore.

Gross non-performing assets (NPAs) stood at Rs 3,875 crore, against Rs 4,055 crore a year earlier. The gross NPA ratio improved to 1.2% from 1.6%, while the net NPA ratio fell to 0.2% from 0.3%. The capital adequacy ratio stood at 14.5%, compared with 15% a year earlier.

The Supreme Court on October 15 upheld the Bombay High Court judgment setting aside the March 2020 write-down of the AT1 bonds and dismissed the appeals against it. Yes Bank said it was evaluating the judgment's implications, implementation and available legal remedies. The bank has not recognised the impact in its reported results, and its joint statutory auditors issued a qualified review conclusion on the matter.

The bank's pro forma disclosure showed a net loss of Rs 5,217 crore for Q2FY27 and Rs 4,146 crore for the first half of FY27 if the impact had been recognised. Under this scenario, net worth would have stood at Rs 46,970 crore, borrowings at Rs 86,149 crore and return on assets at minus 4.3% for the quarter. The capital adequacy ratio would have remained at 14.5%.

Source: Network18 

17/10/26, Jio vs Starlink

Elon Musk, on Friday, responded with a “much appreciated” post to Reliance soon after Starlink also issued a conciliatory statement. Both posts came hours after Reliance issued a firm public statement responding to Musk's direct attack on the company and the Indian regulatory system.

Starlink, in a post on X, said it had worked with regulators, industry stakeholders and operators in India for more than five years. The company said it had also established dedicated systems, gateways and other infrastructure within the country to serve Indian users.

“Starlink is ready to connect India with high-speed internet,” the company said.

In its statement on Friday,  Reliance Industries said that the company  said its growth had been supported by an Indian market that welcomes investment and innovation, provided businesses comply with the law.

“As the Government of India has stated, it applies the same process to every applicant, Indian or foreign. Jio's own satellite services await clearances,” Reliance said in a statement.

Reliance said it had never been afraid of competition, describing it as “the truest test of who serves the customer best”. The company also emphasised that its satellite communication services under Jio were awaiting the necessary approvals.

Sunil Mittal, Chairman of Bharti Enterprises, had also commented on Musk's allegations saying Eutelsat OneWeb applied 5 years ago and was still waiting for clearance. "We are already waiting for approvals. I am significantly ahead, we got our approvals five years back ... ," Mittal said at the Bloomberg New Economy Forum on Wednesday.

All three applicants for satcom licenses, including Starlink, are at the same stage of the regulatory approval process and currently waiting clearance.

17/10/26, IDBI Bank Q2 Results

IDBI Bank on Saturday reported a 39.2 percent year-on-year decline in net profit to Rs 2,206 crore for the second quarter of FY27, compared with Rs 3,627 crore in the corresponding period last year. However, the lender's net interest income (NII) jumped nearly 29 percent, while net interest margin (NIM) expanded significantly and asset quality improved.

The sharp decline in reported profit was largely attributable to a high base in the year-ago quarter, which included a one-off gain of Rs 1,699 crore from the sale of a strategic investment in NSDL. Excluding this gain, IDBI Bsnksaid its net profit increased 14 percent year-on-year.

Sequentially, net profit rose around 4 percent from Rs 2,115 crore in the April-June quarter.

Net interest income, the difference between interest earned and interest paid, increased 28.7 percent year-on-year to Rs 4,227 crore from Rs 3,285 crore a year earlier. On a sequential basis, NII grew approximately 21 percent from Rs 3,486 crore.

The bank's net interest margin improved to 4.11 percent from 3.71 percent in the year-ago quarter, an expansion of 40 basis points. NIM also increased 50 basis points sequentially from 3.61 percent in the June quarter.

Operating profit stood at Rs 2,893 crore, rising 33 percent sequentially. Excluding the one-off NSDL gain recorded last year, operating profit grew 59 percent year-on-year.

The bank's cost-to-income ratio declined to 48.17 percent, an improvement of 385 basis points sequentially, while its cost of deposits fell to 4.55 percent from 4.69 percent a year earlier.

IDBI Bank Q2 results: Asset quality improves

IDBI Bank's gross non-performing asset (GNPA) ratio declined to 2.12 percent from 2.30 percent in the preceding quarter and 2.65 percent a year earlier. However, the net NPA ratio edged up marginally to 0.17 percent from 0.16 percent in the June quarter, although it improved from 0.21 percent a year earlier.

The bank's provision coverage ratio, including technical write-offs, stood at 99.24 percent at the end of September.

Deposits rise 17%, advances grow 18%

Total deposits increased 17 percent year-on-year to Rs 3,55,684 crore from Rs 3,03,408 crore, while net advances grew 18 percent to Rs 2,71,533 crore from Rs 2,30,220 crore. On a sequential basis, deposits increased 9 percent, while net advances expanded 5 percent.

Current account and savings account (CASA) deposits rose 12 percent year-on-year to Rs 1,55,877 crore. The CASA ratio stood at 43.82 percent, improving 18 basis points sequentially.

Capital adequacy strengthens

IDBI Bank's capital adequacy ratio (CRAR) improved to 27.10 percent from 25.39 percent a year earlier, while its Tier 1 capital ratio increased to 26.55 percent from 23.79 percent. The bank reported a return on assets (ROA) of 1.83 percent for the September quarter.

IDBI Bank-Fairfax deal

The results follow the Cabinet's approval of a 60.72 percent stake sale to Fairfax Financial Holdings for Rs 52,878 crore, at Rs 81 per share. IDBI Bank shares closed at Rs 84.12 on Friday, after plunging 7.7 percent on Thursday following the announcement. The stock is down 19 percent year-to-date, compared with an 11.5 percent decline in the Nifty 50.

Report by Shaleen Agrawal 

Source: Network18 

17/10/26, ICICI Bank Q2 Results

ICICI Bank on Saturday reported a 20.1 percent year-on-year rise in standalone net profit to Rs 14,843 crore for the second quarter of FY27, beating market expectations. The private sector lender reported strong growth in net interest income (NII) and advances, while asset quality improved.

The net profit exceeded the CNBC TV18 poll estimate of Rs 14,280 crore by 3.9 percent. 'ICICI Bank net interest income increased 17.7 percent year-on-year to Rs 25,339 crore from Rs 21,529 crore, surpassing the poll estimate of Rs 24,811 crore by 2.1 percent.

Net interest margin declines sequentially

The bank's net interest margin (NIM) stood at 4.18 percent in the July-September quarter, compared with 4.36 percent in the preceding quarter and 4.30 percent in the year-ago period. The sequential decline of 18 basis points reflected pressure on margins despite strong growth in interest income. The bank said the benefit from interest on tax refunds was negligible during the fiscal second quarter, compared with eight basis points in the preceding quarter.

Core operating profit increased 21.8 percent year-on-year to Rs 20,805 crore from Rs 17,078 crore. Fee income rose 20.1 percent to Rs 7,795 crore, with fees from retail, rural and business banking customers accounting for approximately 75 percent of the total. Operating expenses increased 8.5 percent year-on-year to Rs 12,811 crore.

Provisions decline; asset quality improves

ICICI Bank reported provisions, excluding tax provisions, of Rs 851 crore for the September quarter, compared with Rs 914 crore a year earlier, representing a decline of approximately 6.9 percent.

The bank continued to maintain contingency provisions of Rs 13,100 crore, alongside an additional standard asset provision of Rs 1,283 crore made in the third quarter of FY26 under RBI directions relating to its agricultural priority sector portfolio.

Asset quality improved during the quarter. The gross non-performing asset (NPA) ratio declined to 1.20 percent as of September 30, from 1.38 percent at the end of June and 1.58 percent a year earlier.

The net NPA ratio improved to 0.30 percent from 0.35 percent sequentially and 0.39 percent a year earlier. Gross NPA additions stood at Rs 4,833 crore, compared with Rs 5,034 crore in the corresponding quarter last year.

Loan book grows 30%; deposits rise 27%

The bank's total advances increased 30 percent year-on-year and 12.3 percent sequentially to Rs 18.32 lakh crore as of September 30. Excluding loans extended by international branches against foreign currency non-resident (FCNR-B) deposits, total loan growth was 24.1 percent year-on-year and 7.3 percent sequentially.

The retail and rural loan portfolio grew 14.8 percent year-on-year, while the business banking portfolio expanded 33.8 percent. The domestic corporate portfolio registered growth of 30.6 percent.

Total period-end deposits increased 27.1 percent year-on-year to Rs 20.50 lakh crore. Excluding FCNR-B deposits, deposit growth stood at 17 percent. Average deposits rose 21.2 percent to Rs 18.88 lakh crore. The average current account and savings account (CASA) ratio stood at 35.8 percent, reflecting the increase in the term deposit base due to FCNR-B deposit inflows.

Capital adequacy remains above regulatory requirements

ICICI Bank's total capital adequacy ratio stood at 16.68 percent as of September 30, while its common equity tier-1 (CET-1) ratio was 16.01 percent. Both remained above the respective minimum regulatory requirements of 11.70 percent and 8.20 percent. During the quarter, the bank also acquired an additional 2 percent stake in ICICI Life Insurance for Rs 1,470 crore.

ICICI Bank share price

ICICI Bank shares closed 0.55 percent higher at Rs 1,397 on Friday, ahead of the earnings announcement. The stock has gained 4.4 percent year-to-date, outperforming the Nifty 50, which has declined 11.5 percent over the same period. The bank's market capitalisation stood at approximately Rs 10.03 lakh crore at Friday's close.

Report by Shaleen Agrawal

Source: Network18