Beyond the numbers, investors will also be watching leadership changes across the sector.
The Reserve Bank of India’s latest measures to attract foreign currency inflows are set to lift optimism when some of the country’s largest private sector banks report on Saturday. First-quarter profits were underpinned by stronger-than-expected credit growth, pre-earnings updates show. HDFC Bank Ltd, the largest of these lenders, saw advances grow 15.4 per cent in the April-June quarter, while Axis Bank Ltd reported an 18.8 per cent rise. That’s squeezing lending margins as loan demand outpaced deposits while the sector absorbed recent rate cuts.Those margins are expected to improve going forward, Nuvama said. Foreign currency deposits from non-residents should improve liquidity after the RBI said it would bear the cost of currency hedging. Commentary on the mobilisation of these deposits and their potential to narrow the funding gap will be a key focus this earnings season, Nomura said.Beyond the numbers, investors will also be watching leadership changes across the sector. Kotak Mahindra Bank Ltd is currently searching for a CEO, while Axis Bank is looking to replace its CFO. HDFC Bank on Wednesday got central bank approval to appoint Rajiv Kumar as part-time chairman, after the messy exit of its previous one. Highlights to look out for: Saturday: Kotak Mahindra Bank (KMB IN) and Axis Bank (AXSB IN) management changes will be in focus. Both may surpass 20 per cent net income growth, the fastest in at least eight quarters.
