Banking earnings preview: Sharekhan Special dated July 11, 2006

[Sunil]

 

Sharekhan Special [July 11, 2006] Please see the attachment for details Share khan www.sharekhan.com

Summary of Contents   Banking earnings preview We expect most of the public sector banks (PSBs) to report a decline in their earnings for Q1FY2007 despite a strong loan growth, due to the contraction of the net interest margins and the losses on the bond portfolios. We expect the private sector banks to fare better than their peers in the public sector and report better results on account of a strong growth in the non-interest income and lower provisioning. We expect the PSB majors like State Bank of India and Punjab National Bank to report a decline of 16% year on year (yoy) and 18% yoy in their respective earnings. HDFC Bank, ICICI Bank and UTI Bank are likely report a growth of 29.6% yoy, 12% yoy and 22% yoy respectively in their earnings for Q1FY2007.

Regards, The Sharekhan Research Team myac...@sharekhan.com

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