Tag: hdfc bank

SBI to float At-1 bonds in domestic market, will mufual funds buy?, BFSI News, ET BFSI

Banking & Finance

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After HDFC Bank and Axis Bank successfully raised Additional Tier 1 (AT1) bonds from overseas investors, the State Bank of India is set to test the local market this week with such bonds.

State Bank of India plans to raise up to Rs 4,000 crore selling AT-1 in the local market, first by a lender in this fiscal.

The At-1 market was almost dead after the Securities and Exchange Board of India earlier this year changed the valuation rules, which were partially rolled back later.

If the issue is successful, other lenders may tap the local market rather than the overseas market.

HDFC Bank and Axis Bank have eschewed the local market this year raising funds via the AT1 route in the overseas market.

SBI bonds

SBI bonds are expected to be up for bidding on Wednesday on the electronic debt bidding platform of stock exchanges. The bonds may offer between 7.90% and 8.10% with a five-year call option, which allows investors an exit route.

AT1, or perpetual bonds, do not have any fixed maturity.

The bonds are compliant with Basel-III, an international capital standard.

SBI Capital Markets is helping the bank raise the money. It has reached out to several local investors including private banks, corporate treasuries, bond houses, retirement bodies, wealth managers and insurers.

AT1 bonds are billed as quasi-equity securities that bear a higher risk of capital losses. These are generally rated three-to-four notches lower than an issuer’s corporate credit rating.

Local rating firms Crisil and India Ratings have graded the SBI’s paper AAplus with a stable outlook.

The mutual fund position

Mutual funds, which once used to buy heavily in AT1 bonds, are lukewarm about this asset class after the banking regulator last year ordered that these instruments be written off in Yes Bank’s state-sponsored bailout. Also, on March 10, Sebi had ordered mutual funds to cap ownership of bonds with special features at 10% of the assets of a scheme and value them as 100-year instruments from next month, potentially triggering a redemption wave. Later, the capital markets regulator eased valuation rules but with some riders after the finance ministry asked it to withdraw the directive to mutual funds.

The muted response by MFs had prompted the lenders to tap the overseas market

Perpetual bond sales by banks have nearly halved to Rs 18,772 crore in FY21 from Rs 34,860 crore three years earlier.



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Bharti Airtel | HDFC Bank: Would HDFC Bank, Bharti Airtel make good bets now? Sandip Sabharwal answers, BFSI News, ET BFSI

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If insurance stocks correct more, then they could give an opportunity for investors who are looking to invest for one or two years, says Sandip Sabharwal of asksandipsabharwal.com.

We have seen a bit of traction come by this week, specially in HDFC Life. There are two parts of this story in insurance as a whole — life and general. What is your take on the insurance stocks in India?
On one side, the long-term growth prospects are very strong because of the fact that insurance penetration in India is still suboptimal. It is not as suboptimal as it used to be a decade back but it still has a long way to go because there are still lots of uninsured people. Secondly, the way insurance was sold in the past and the changes that are getting made, are yet to play out. So that is one part of the story.

The second part of the insurance story has to do with the valuation story and the provisioning required because of Covid etc, which is event based and cannot be extrapolated because that does not impact the long-term mortality rate of the country.

But on valuations, these stocks are not cheap and that is the key issue. At this point of time, as far as insurance companies go, because the valuations of most of these companies — be it HDFC Life, ICICI Pru — which used to be cheap but is no longer cheap — or SBI Life are very expensive taking into account annualised premium equivalent or the new business premium into account, moving into the COVID hit quarter of last year.

Growth adjusted, these stocks are not cheap but they tend to be contrarian movers to the market. So when markets are weak, these stocks typically hold on and they do not do as well when the markets are moving up. In a corrective move, they could hold on but not absolute gain wise. I would still think that if these stocks correct more, then they could give an opportunity for investors who are looking to invest for one or two years.

For investors with a longer term horizon of say five to ten years, they will still make money even if they buy at these rates.

How do you think the market is reading into fundraising plans of Bharti Airtel? Seems like not quite well. looking at the price action in the stock today?
On one side, we have lots of IPOs getting lapped up at very high valuation. On the other side, we have a company which is actually on the verge of a growth cycle in earnings, where the market has not reacted well to its fundraising. That is fine. I would agree with the fact that fund raising by Bharti of a reasonable size could actually help it strengthen its balance sheet; secondly, gain market share in key segments and also get ready for 5G. The market is at an all-time high.

The Bharti Airtel stock went to a new high before correcting 5-6% from the top. So it is perfectly fine. I don’t think that it is a bad move. It depends on the way they are structuring whether they are getting in more money from Singtel or who is investing or whether it is going to be a QIP or rights issue. We still need to see these things but I would think that it is not a bad move to strengthen the balance sheet as the industry has gone through a very tough phase. The pricing discipline should come in but it has not yet come in.

The stock could obviously remain somewhat weak in the near term till the fund raising gets through but longer term the stock should do well.

What happens to banks? While ICICI Bank and SBI are showing leadership amongst the large banking names, HDFC Bank looks ready to play catch up then to ICICI Bank and SBI and form part of the leadership gang within banks?
The HDFC Bank stock performance will depend more on how the new management executes growth strategy and whether they can do it by managing the NPAs in a manner which was there under Aditya Puri’s leadership. The first signs over the last couple of quarters do not seem to indicate that and to that extent, it is an open competition. The challenge for most of the banks now are twofold; one, the overall credit growth in the system is just 6% and everyone is grappling for growth. So, some banks which were used to growing at 15-20% like HDFC Bank, how do they grow like that when the system wide growth is just 5-6% without taking risk as that could lead to an NPA spike. So that is a challenge.

The overall banking sector is challenged to that extent because there is no growth. There were initially some moves in a lot of these financial schemes because the NPA spike up due to the first wave of Covid was not as much as what people were expecting and the second wave actually has led to some NPA spike. So I would think that the overall financial space is at a stage where more consolidation is needed and it could still underperform as the markets correct.

In the case of HDFC Bank, they need to execute to retain the premium and for that, we will have to wait for two to three quarters. The initial bump up has happened as some restrictions got removed by RBI but that move is more or less through now. It will depend on growth and the NPA picture.



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Ezetap, BFSI News, ET BFSI

Personal Finance

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Customers are increasingly preferring to pay through EMIs while buying high-value consumer items, as affordability has become a key factor in the post-pandemic scenario, payments solution provider Ezetap said on Thursday. Buying ability of consumers across the country has been significantly reduced due to the pandemic. They are either avoiding a single big payment or entirely skipping to buy any new item, Ezetap said.

This has impacted sales across brands and created a vast need for affordable solutions for customers across different sectors.

Ezetap has recorded a steep increase of 220 per cent in the transactional volume of equated monthly instalments (EMI) in July 2021, compared to February 2020. EMI volume as part of total transactions has increased to 18 per cent in the mobile and consumer durables segment, compared to 9 per cent in the pre-pandemic period of March 2020, it said.

“This indicates a growing inclination of consumers towards affordability solutions, which help increase their purchasing power. This also indicates that EMI or affordability presents a massive opportunity for brands to grow their sales across diverse product segments,” it added.

Delhi led metro cities with an increase of 258 per cent in total EMI volume followed by Bengaluru, clocking a growth of 206 per cent.

There has been a significant increase in the adoption of EMI transactions in non-metro cities with a combined contribution of 59 per cent in the total EMI volumes. Ahmedabad and Pune registered growth figures of 230 per cent and 210 per cent, respectively.

“This shows that affordability solutions play a positive role in impacting sales…This may be partially attributed to the fact that a large portion of the working population have moved back to their hometowns due to work from home models, and have contributed to EMI sales in their respective hometowns” it added.

According to Ezetap, a surge in debit card EMIs is one of the main reasons behind the steep increase in such transactions and it has increased significantly with nearly 25 per cent contribution in the total EMI volumes.

Through a tie-up with several banks, Ezetap offers instant EMIs via credit and debit card. The average ticket size of EMI transactions recorded by Ezetap has increased from Rs 18,000 in February 2020, to Rs 32,000 in July 2021.

In a move to expand the benefits of EMIs, Ezetap has also tied up with ZestMoney to provide NBFC EMIs.

Another factor for large-scale uptake of EMIs is no-cost EMIs and vouchers available to customers by various brands. Nearly 50 per cent of Ezetap EMI transaction volume can be attributed to no-cost brand EMIs, it said.

On the mobile and consumer durable space, there is at least one card offer being rolled out by various brands to drive more sales. Ezetap has also partnered with Xiaomi to provide EMIs to customers.

Customers are avoiding bulk payments and preferring affordable payment options to reduce the monetary burden, and some non-metro cities have growth of over 200 per cent in EMI transactions, Byas Nambisan, CEO, Ezetap, said.

“We have been able to reduce the transaction time by nearly 80 per cent and eliminate the manual errors with EMI integrated into the merchant’s billing POS. We will continue our efforts to provide the retail businesses with robust and integrated Buy Now Pay Later solutions, like EMIs, to improve the purchasing power of their end customers,” he said.

Ezetap has forged tie-ups with banks such as Axis Bank, HDFC Bank, Citibank, State Bank of India, American Express, Yes Bank and ICICI Bank. PTI KPM KPM BAL BAL



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HDFC Bank divests over 2 per cent stake in CDSL for Rs 223 crore, BFSI News, ET BFSI

Banking & Finance

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HDFC Bank has divested more than 2 per cent stake in Central Depository Services (India) Ltd (CDSL) in tranches during June-August this year, garnering nearly Rs 223 crore from the sale, according to a regulatory filing. HDFC Bank sold 23,11,000 equity shares of face value of Rs 10 each fully paid up held by the bank in CDSL through the secondary market route on the NSE, the private bank said in the regulatory filing.

The divestment of 2.21 per cent stake in Central Depository Services (India) Ltd took place over a period from June 22 to August 24, 2021.

The bank sold 20,36,000 shares (1.95 per cent) of CDSL at an average price of Rs 937.46 per piece on June 22. On August 23, it sold 2,13,481 shares at Rs 1,168.94 apiece and on August 24, it sold 61,519 shares for Rs 1,119.31 apiece.

The shares were sold for a cash consideration of Rs 222.71 crore, HDFC Bank said.

CDSL provides depository services to market participants. It has three operating services: depository, data entry and record keeping of KYC documents of capital market investors, and repository.

Repository provides policyholders and warehouse receipt holders the facility to keep insurance policies and warehouse receipts in electronic form, as well as to undertake changes, modifications and revisions in it.



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HDFC Bank looks to regain credit card market share in 3-4 quarters

Banking & Finance

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Private sector lender HDFC Bank hopes to regain its market share in the credit card business in the next three to four quarters after the Reserve Bank of India (RBI) lifted curbs on the lender from sourcing new customers.

The bank plans to issue three lakh credit cards per month from next month, which will gradually be raised to five lakh issuances per month, said Parag Rao, Group Head – Payments, Consumer Finance, Digital Banking and IT, HDFC Bank, on Monday, in a virtual press conference.

New initiatives

Rao pointed out that although the bank lost its market share by a number of cards, it was able to maintain the market share on initiatives taken to prod users to spend.

“HDFC Bank has over 20 initiatives which will hit the market in the next six to nine months to drive this growth,” the lender said in a statement, adding that these include the launch of new co-branded cards with the who’s who of corporate India, spanning sectors like pharma, travel, FMCG, hospitality, telecom, and fintech.

The bank has also revamped its existing range of cards over the past nine months and is also ready with strategic partnerships with new companies, it further said.

The RBI had on August 17 relaxed the restriction placed on the private sector lender on sourcing of new credit cards, which it had imposed eight months earlier in December 2020.

The lender will depend on its internal set of customers to grow the number of cards and is also looking at partner with key players like Paytm to increase its sourcing.

The conservative approach on the credit front will continue for the bank even as it goes aggressively on the new business sourcing, Rao said.

Despite the ban, the bank has maintained its leadership position in the credit card segment over the past eight months and has about 3.67 crore debit cards, 1.48 crore credit cards, and about 21.34 lakh acceptance points.

However, it has lost about 6 lakh cards since the date of embargo while competitors like ICICI Bank, SBI Cards, and Axis Bank have gained more customers.

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HDFC Bank will issue 3 lakh cards a month, regain lost ground, BFSI News, ET BFSI

Banking & Finance

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MUMBAI: HDFC Bank on Monday unveiled its plans to regain the market share it lost in credit cards during an eight-month ban on new issues.

The bank said that it will issue three lakh cards a month — its monthly run rate before the ban — for the next two to three quarters, following which it will scale up to five lakh cards a month.

Outlining the plans, the bank’s group head for payments & consumer finance, digital banking and IT, Parag Rao, said, “In the next three to four quarters, we will regain all our lost market share. The bank has lost close to 2% as rivals like ICICI Bank, Axis Bank and SBI Card swooped in to fill the demand.”

According to Rao, the four-pronged strategy would be to tweak the products, sell more cards to its six-crore customer base, add more partners like fintech companies, telecom, hospitality and pharma companies. It has also revamped the digital process to allow more do-it-yourself features to customers on the bank’s app.

Rao said that despite the embargo from the RBI, the bank managed to scale up spend volumes by 60% year-on-year during the first quarter.

“Our card spend is on an average one and a half times that of the industry,” said Rao. He said in the eight months the bank has been busy analysing industry trends and customer behaviour and now planned to put them to work.

“During the pandemic, we have seen cards being used for low-value transactions as well. In the past, lower credit limits resulted in inactive cards. We are now seeing active users voluntarily opting for lower limits,” Rao added.

HDFC Bank’s outstanding credit cards has declined to 1.48 crore as of June 2021 from 1.53 crore in November 2020 as a result of the ban. The same for ICICI Bank increased to 1.10 crore from 97 lakh, and SBI Card had its number increase to 1.20 crore in June 2021 from 1.12 crore in November 2020.

In a statement, the bank said that it has 20 new partnerships lined up for the next 6-9 months, including co-branded offerings. Rao said while the bank lost market share in terms of number of active cards, it has been able to retain its share by overall spending courtesy specific initiatives to prod customers.



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HDFC Bank will issue 3 lakh cards a month, regain lost ground, BFSI News, ET BFSI

Banking & Finance

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HDFC Bank on Monday unveiled its plans to regain the market share it lost in credit cards during an eight-month ban on new issues. The bank said that it will issue three lakh cards a month — its monthly run rate before the ban — for the next two to three quarters, following which it will scale up to five lakh cards a month.

Outlining the plans, the bank’s group head for payments & consumer finance, digital banking and IT, Parag Rao, said, “In the next three to four quarters, we will regain all our lost market share. The bank has lost close to 2% as rivals like ICICI Bank, Axis Bank and SBI Card swooped in to fill the demand.

According to Rao, the fourpronged strategy would be to tweak the products, sell more cards to its six-crore customer base, add more partners like fintech companies, telecom, hospitality and pharma companies. It has also revamped the digital process to allow more do-it-yourself features to customers on the bank’s app.

Rao said that despite the embargo from the RBI, the bank managed to scale up spend volumes by 60% year-on-year during the first quarter. “Our card spend is on an average one and a half times that of the industry,” said Rao. He said in the eight months the bank has been busy analysing industry trends and customer behaviour and now planned to put them to work.



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HDFC Bank outlines aggressive play in credit cards to regain lost mkt share in a year, BFSI News, ET BFSI

Banking & Finance

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Mumbai, Aug 23 (PTI) HDFC Bank on Monday said it aims to regain the two per cent market share in the credit card market it ceded to rivals during a recent ban, within a year by aggressively tapping into its existing depositor base. The bank will also focus on forging new partnerships to sell more cards and will not deviate from its conservative approach on taking credit risks as it goes aggressive in the market, its group head for payments and consumer finance, digital banking and IT, Parag Rao, told reporters.

On August 17, RBI lifted the ban on HDFC Bank which had prevented it from issuing new credit cards from December 2020. However, the restrictions on launching new digital initiatives are yet to be lifted. Its smaller rivals, including ICICI Bank and SBI Card, have utilised the opportunity created by HDFC Bank’s absence to narrow the gap with the market leader in the last eight months.

Going forward, HDFC Bank has set specific milestones for itself, which will include ramping up monthly card issuances to the November 2020 level of 3 lakh in up to three months, and going up further two 5 lakh a month in another two quarters, Rao said.

In the next three-four quarters, HDFC Bank is targeting to regain all the lost market share, he added.

When asked about the restrictions on digital launches, Rao said the bank continues to engage with RBI on compliance with remedial objectives. It has closed the short term milestones, is in the final laps on the medium term ones and work is in progress on the long term ones, Rao said, adding that it is waiting to hear from RBI.

HDFC Bank’s outstanding credit cards has declined to 1.48 crore as of June 2021 from 1.53 crore in November 2020 as a result of the ban. The same for ICICI Bank increased to 1.10 crore from 97 lakh, and SBI Card had its number increase to 1.20 crore in June 2021 from 1.12 crore in November 2020.

Rao said while the bank lost market share by number of active cards, it has been able to retain its share by overall spending courtesy specific initiatives to prod customers.

He said overall spends on the credit card portfolio have increased 60 per cent in the April-June quarter as against the year-ago period while the Earnest Monthly Instalment (EMI) option on high value purchases has seen an 80 per cent increase, and the bank is 1.5 times ahead of competition on spends.

When asked about the credit quality, Rao declined to comment on the specifics on the portfolio but asserted that it will not be softening on its conservative stance on extending credit. The bank will make use of more digital and data analytics products while extending credit, he said.

The bank expects a bulk of the new cards to come from existing customers who have deposits with the bank, Rao said, adding that it has 6 crore customers at present.

Serving the existing customers helps from a quality perspective as the bank has a better understanding of the customers, he said, adding that it already has a significant amount of customers with pre-approved credit cards who have not been contacted in the last eight months.

Moreover, customer insights are also pointing to higher affinity to cards with lower credit limits, he said. The bank will start serving such segments as well.

Apart from its own customers, the bank will depend on partnerships and tie-ups with other players, including fintech players, payment companies and corporates to engage new clients. The partnership with Paytm announced earlier in the day is the first such initiative, he noted.

In a statement, the bank said it has 20 such initiatives planned over the next 6-9 months, which will also include co-branded offerings with companies in the pharma, travel, fast moving consumer goods, hospitality, telecom and fintech space.

As it engages more with partners, the ratio of new to bank customers in the incremental credit card customers will increase to 25 per cent of the overall from the present 20 per cent, Rao said.

“The last few months have been spent in readying ourselves for the future. When the restrictions from the regulator were in place, we utilised the time to chalk out a new strategy. With our new offerings as well as our existing suite of cards, we are confident of meeting the needs of our customers and ‘come back with a bang’,” he said.

The bank scrip closed 0.60 per cent higher at Rs 1,523.50 a piece on the BSE on Monday as against gains of 0.41 per cent on the benchmark.



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Deposit customers, alliances to lead HDFC Bank’s credit card comeback, BFSI News, ET BFSI

Banking & Finance

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HDFC Bank expects to increase its credit card issuance to half a million per month by February 2022 riding on its expanded liability base, new partnerships and wider product suite as it looks to make up for the lost nine months in which it was restricted in issuing new cards by the Reserve Bank of India (RBI).

Parag Rao, group head, payments, consumer finance, digital banking and IT, HDFC Bank said the bank expects to get to the pre-ban run rate of 300,000 per month in the next two months and increase it to 500,000 by February in largely driven by new deposit customers added to the bank’s franchise in the last nine months.

“Over the years our business has grown largely on the back of our liability customers and we expect that to continue. Over the last nine months we have added 400,000 accounts every month, this in addition to the 60 million customer base we have will be the main drivers of our growth and we have enough headroom to grow. We already have a pipeline of pre-approved cards based on customer profiles that have been monitored since the ban,” Rao said.

80% of the bank’s new cards are issued to new customers currently and Rao does not expect this ratio to drop much dispute new commercial partnerships the bank plans to launch.

On December 3 last year, RBI barred HDFC Bank from issuing new credit cards and introducing new digital products after multiple glitches linked to digital banking, cards and payments on the bank’s platform were reported in the past two years.

The ban was lifted on August 17 but not before impacting the bank’s market share as number of outstanding credit cards dropped from 15.4 million in November 2020 to 14.8 million in June 2021, even as its closest competitors gained at its expense.

Even as the credit card ban was lifted the RBI still has some restrictions on the bank for new launches of digital business generating activities planned under Digital 2.0. It is unclear how those restrictions will impact the bank.

Despite the loss of market share in credit cards, HDFC Bank remains the largest issuer of credit cards in India ahead of SBI Card (12 million) and ICICI Bank (11 million) latest available RBI data as of June 2021 showed.

Rao said the bank used the last nine months in relooking at its value proporsition, engaging with existing customers more deeply and building new strategic alliances which will be announced starting from the festive season next month.

HDFC Bank has lined 20 initiatives including co-branded cards with tie-ups with travel, fintech, consumption, hospitality and mobility companies among others. These alliances will be unveiled over the next nine months.

Rao said depsite the ban the bank has been able to retain its market share in terms of card spends and spends on its cards are still 1.5 times higher than the nearest competitor.

The bank will use more digital data for underwriting and is also in the process to create a multichannel social media and phone-based hub to address customer greviances.

The bank also plans to increase its footprint in merchant acquiring and point of sale businesses to 200 million from 2.3 million currently, Rao said.



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Ujjivan SFB tumbled 32% in six days. Here’s what analysts said, BFSI News, ET BFSI

Banking & Finance

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NEW DELHI: Shares of Ujjivan Small Finance Bank (SFB) tanked 10 per cent in Monday’s trade, in addition to a 19 per cent decline on Friday, to take its losing streak into the sixth straight session. The sharp fall in the stock has occurred ever since Nitin Chugh, who had joined the bank in August 2019 and was elevated to MD & CEO’s position in December 2019, tendered his resignation, citing personal reasons.

Analysts are not convinced that the resignation of Chugh, whose three-year term would have ended in December 2022, was due to personal reasons. But their price targets suggest the stock has mostly factored in the negative event.

Chugh’s exit came in the backdrop of exit of multiple board members and management executives at Ujjivan SFB. That included the CFO’s resignation a month ago.

Emkay Global said the impression from the analyst call was that the resignation of Chugh, an ex-digital banking head at HDFC Bank, was mainly due to the bank’s persistent underperformance on the asset-quality front, delayed recognition of NPAs in MFI and large-scale attrition at the lower-middle level.

Other than the underperformance, some niggling issues with the old management and his incompatible new-age management style in the still MFI-dominated old school bank could also have contributed to the resignation, Emkay said.

“Ujjivan’s current situation is probably an extreme version of challenges that smaller/newer banks have faced when undergoing leadership transition or entry of external talent at senior management level. Rebuilding and motivating the team will be critical so that the bank can recover lost ground and benefit from a possible recovery in asset quality and loan growth over the next 12 months,” Kotak Institutional Equities said.

The brokerage, however, felt this is not an underwriting issue and is a lot more operational in nature. While the medium-term challenge will be to identify the next suitable CEO, such transitions, Kotak said, are rarely smooth.

The stock fell 9.64 per cent to hit a low of Rs 17.80 in Monday’s trade. The scrip is down 31.93 per cent over August 12’s closing of Rs 26.15.

A decision on the appointment of an interim CEO will be taken in the board meeting on August 25, Wednesday. Chugh’s resignation will be effective from September 30.

“The churn in the management team and board of directors is likely to have a knock-on effect on the growth strategy of the bank, as Chugh was spearheading the digital initiatives of the bank. Considering the uncertainty in terms of incoming top management and the future growth outlook, we are putting Ujjivan SFB “under preview,” said Edelweiss Securities.

The bank has on-boarded four directors, including Samit Ghosh and erstwhile CEO/CFO Sudha Suresh, to strengthen the board, oversee the management transition and make an attempt to resurrect the bank.

Ghosh is a common director with the holding company Ujjivan Financial Services.

As MD & CEO, Chugh’s Ujjivan faced 4 major challenges: holding company dilution, opex control, retail deposit build-up, and improving secured loan share. Analysts said the bank was on the path to sorting out three of these four issues.

“On the hold-co dilution issue, the RBI via letter dated July 9 permitted SFBs and holding companies to apply for reverse merger, which signalled that Ujjival Financial Services could be reverse merged with Ujjivan SFB. During Chugh’s tenure, the bank did well on deposits, as CASA ratio consistently increased from 11.6 per cent in December quarter to 20.3 per cent in June quarter. Opex was also controlled, with opex to assets in FY21 seeing a sharp reduction to 6.2 per cent from 8.2 per cent in FY20,” said Centrum Broking.

The brokerage said while the transition towards a secured loan profile was progressing well, with the secured share rising from 21 per cent to 32 per cent on a YoY basis in June quarter, material exposure (nearly 80 per cent of loans) to MFI and secured SME severely affected asset quality.

“Resignation of key managerial personnel could lead to near-term pressure until someone is appointed, though stress formation is partly priced in. We had downgraded FY22E earnings by 76 per cent due to loss in Q1FY22 and likely provisions in FY22. MFI/MSE loan exposure at 80 per cent is affecting USFB, leading to stress build-up and protracted recoveries,” Centrum said while suggesting a target of Rs 31.

Kotak has a target of Rs 24, down from Rs 31 earlier. Emkay finds the stock Rs 17 worth Monday’s low, these targets suggest a limited downside from here on.



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