10:40 am Interview: On the back of a strong showing in the third quarter, Murali Natrajan, Managing Director and Chief Executive Officer of private sector lender DCB Bank, told CNBC-TV18 that the “low point is past us” with respect to the impact of demonetisation and that stability on the cards.
DCB Bank reported at 25 percent surge in December quarter net at Rs 51 crore, driven primarily by a surge in the core interest income. Its net interest income rose 31 percent to Rs 209 crore, while the non-interest income was up 36 crore to Rs 64 crore during the reporting quarter.
Natrajan said the lender’s CASA growth, which he termed as the “toughest to crack”, had jumped 400 basis points in the quarter ending December, giving it 6-9 months headstart. The share of low-cost current and savings account balances increased to 25.85 percent as on December 31, from the 21.91 percent three months ago, on the back of a surge in deposits following the move to scrap Rs 500 and Rs 1,000 notes by the Central government.
10:20 am FII View: Pointing out the macro data in the months of November and December may contain demonetisation “one-offs”, Neelkanth Mishra of Credit Suisse said the impact of the currency recall exercise will extend beyond the March quarter. It will be take about 12-18 months to assess the complete impact of demonetisation, he said.
Mishra pegged corporate earnings growth in FY18 at 10-12 percent, while saying the FY17 earnings growth may be hit due to demonetisation.
Sharing his outlook on the IT sector which has seen slowdown in the recent quarters, Mishra said it is possible that IT sector revenues will grow in the next few quarters. If corporate spending in the US increases on account of factors like taxes, Indian IT companies will benefit, he added.
10:00 am Market Check
Benchmark indices recouped early losses with the Nifty reclaiming 8400 level. HDFC group and Tata group stocks supported the market while FMCG and select IT stocks remained under pressure.
The 30-share BSE Sensex was up 5.30 points at 27243.36 and the 50-share NSE Nifty fell 6.80 points to 8393.55 while the broader markets outperformed benchmarks. The BSE Midcap and Smallcap indices gained 0.3 percent each.
Tata Motors, Tata Steel and TCS gained 0.4-1.6 percent after a media report indicated that borrowing costs could fall 20-30bps after appointment of Chandra as Chairman of Tata Sons.
HDFC Bank, HDFC, L&T, SBI and Lupin rose 0.6-1 percent while Infosys fell further, down more than 1.5 percent followed by Reliance Industries, ITC, ICICI Bank and HUL.
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