Weak credit growth and rate cuts to squeeze profit at HDFC, ICICI Banks
Reserve Bank of India
's rate cuts — 100 basis points since the start of the year — and a reduction of the cash reserve ratio to boost liquidity and further reduce funding costs in order to buoy the economy.
The moves came as lending growth weakens, with gross bank
credit growth
hitting a three-year low in May. India's finance minister Nirmala Sitharaman asked government-owned banks to boost lending in order to fuel
economic growth
, according to Mint. Her ministry is also said to be considering issuing new banking licenses for the first time in almost a decade.
Explore courses from Top Institutes in
Select a Course Category
Product Management
Degree
Finance
Data Analytics
PGDM
Project Management
Cybersecurity
Healthcare
CXO
Data Science
Data Science
Technology
Others
Operations Management
Design Thinking
Public Policy
healthcare
Artificial Intelligence
Leadership
MBA
Digital Marketing
others
Management
MCA
Skills you'll gain:
Product Strategy & Competitive Advantage Tactics
Product Development Processes & Market Orientations
Product Analytics & Data-Driven Decision Making
Agile Development, Design Thinking, & Product Leadership
Duration:
40 Weeks
IIM Kozhikode
Professional Certificate in Product Management
Starts on
Jun 26, 2024
Get Details
Skills you'll gain:
Product Strategy & Roadmapping
User-Centric Product Design
Agile Product Development
Market Analysis & Product Launch
Duration:
24 Weeks
Indian School of Business
Professional Certificate in Product Management
Starts on
Jun 26, 2024
Get Details
Skills you'll gain:
Creating Effective Product Roadmap
User Research & Translating it to Product Design
Key Metrics via Product Analytics
Hand-On Projects Using Cutting Edge Tools
Duration:
12 Weeks
Indian School of Business
ISB Product Management
Starts on
May 14, 2024
Get Details
Bloomberg
Efforts to shore up the economy are under way as the country is gradually recovering after a consumption slowdown last year. Firms like
Nestle India
Ltd. — due Thursday — should show an acceleration in revenue growth led by better product volumes.
Tariff concerns will cloud
Infosys
Ltd.'s Wednesday update after rival
Tata Consultancy Services
Ltd. said many American clients were cautious about tech investments given ongoing economic uncertainty. Shares in Tata Consultancy Services,
HCL Technologies
Ltd. and
Tech Mahindra
Ltd. all dropped after reporting earnings.
Live Events
Highlights to look out for:
Saturday:
HDFC Bank
(HDFCB IN) and
ICICI Bank
(ICICIBC IN)
profit growth
is seen limited by thinning margins, as loans typically re-price faster than deposits when interest rates change. HDFC Bank said earlier in July gross advances grew 0.4% on the quarter, trailing deposit growth of 1.8%, as it continues efforts to bring down its loan-deposit ratio. HDFC Bank will also consider issuing bonus shares for the first time. Meanwhile,
ICICI Bank
is expected to set aside higher provisions as unsecured lending rises, raising
asset quality risks
, according to Bloomberg Intelligence.
Monday:
Eternal's (ETERNAL IN) first-quarter profit is expected to halve on losses at its quick-commerce business Blinkit. The unit is investing in expanding its 'dark stores' network, where it services quick-commerce orders, and analysts will watch for updated guidance on when profits are expected. Strategic steer on its new 'Going Out' business will equally be in focus.
Tuesday:
No major earnings.
Wednesday:
Infosys (INFO IN) could lower or pull its revenue growth guidance as demand for new projects deteriorates amid worsening economic conditions, BI said. Watch for commentary on whether clients are canceling projects, especially in industries hit by US tariffs, Kotak Institutional Equities said.
Thursday:
Nidec's (6594 JP) sales would likely be affected by uncertainties in the auto market, as demand for electronic parts and motors slow in Japan, according to BI. Founder Shigenobu Nagamori said the firm's appetite for takeovers remains intact, following its earlier decision to withdraw a $1.8 billion hostile bid for Makino Milling Machine Co.
- SK Hynix's (000660 KS) second-quarter operating profit likely rose 63%, consensus shows. Margins could reach 45% to 47%, BI said, supported by robust average selling prices for memory chips. Meanwhile DRAM shipments might have risen above its guidance. Seasonal demand could kick up DRAM and NAND shipments in the third quarter, BI added.
- Nestle India's (NEST IN) first-quarter earnings may be supported by higher revenue contributions from both its domestic and export segments. The company is expected to be on an improving growth trajectory, Citi said. Watch out for strategic initiatives following a change in leadership.
-
Bajaj Finance
's (BAF IN) lending growth is expected to slow in keeping with sector peers. Asset quality trends may be softer in the non-banking finance sector as a weaker macro environment has slightly exacerbated usual seasonal weaknesses, according to Jefferies.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
9 minutes ago
- The Hindu
Rupee falls for sixth straight session, ends 3 paise lower against U.S. dollar
The rupee stayed weak for the sixth consecutive session and settled with a loss of 3 paise at 86.41 (provisional) against the dollar on Wednesday (July 23, 2025), amid a strong American currency and outflow of foreign funds. Forex traders said the domestic unit, however, found some cushion due to lower crude oil prices and heavy buying in domestic equity markets in line with global trends after the U.S. announced a trade deal with Japan. At the interbank foreign exchange, the Indian currency opened weak at 86.46 and touched the intra-day peak of 86.34 against the greenback. The unit ended the session at 86.41 (provisional), registering a loss of 3 paise from its previous closing level. At the end of Tuesday's (July 22) trading session, the local unit settled at 86.38, down 7 paise over its previous close. This was rupee's fifth straight session of decline since July 16 when the unit had lost 16 paise and settled at 85.92 against the dollar. Decline in crude oil prices offsets FIIs' outflows Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee weakened on a strong greenback and foreign institutional investors' outflows. However, overnight decline in crude oil prices and positive domestic equities cushioned the downside. "Traders may take cues from PPI and industrial production data from the US. USD-INR spot price is expected to trade in a range of ₹85.60 to ₹86.30," he added. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.04 per cent to 97.16. Analysts attributed gains in dollar index to higher inflation in the U.S. that has reduced hopes for an interest rate cut by the Federal Reserve. Brent crude, the global oil benchmark, declined 0.52 per cent to USD 68.23 per barrel in futures trade. According to experts, investors are awaiting the outcome of India-U.S. trade talks ahead of the August 1 deadline as Indian exporters are staring at higher tariffs in American market. If the discussions fail or get delayed, Indian exporters could face fresh pressure — adding to the rupee's challenges. The U.S. team will visit India in August for the next round of negotiations for the proposed bilateral trade agreement between the two countries. India and the U.S. teams concluded the fifth round of talks for the agreement last week in Washington. Meanwhile, in the domestic equity market, Sensex climbed 539.83 points, or 0.66 per cent, to 82,726.64, while Nifty rose 159.00 points, or 0.63 per cent, to 25,219.90. Foreign institutional investors (FIIs) offloaded equities worth ₹3,548.92 crore on a net basis on Tuesday (July 22), according to exchange data.
Time of India
9 minutes ago
- Time of India
Chinese automakers gain ground in contracting European market, data shows
Car registrations across Europe declined in June, with a 4.4% year-on-year drop to 1.25 million vehicles, data from Jato Dynamics showed on Wednesday. While overall demand softened, Chinese automakers continued to gain ground, taking a record market share and squeezing several established European brands, the research data showed. While overall demand softened, Chinese automakers continued to gain ground, taking a record market share and squeezing several established European brands, the research data showed. WHY IT'S IMPORTANT Chinese automakers are expanding in Europe, breaking into a market traditionally dominated by European and American brands supported by their cheaper pricing amid a shift towards electric vehicles . This has stoked trade tensions between Brussels and Beijing, including a row over EU tariffs on Chinese-made EVs, imposed to protect European producers. BY THE NUMBERS Chinese brands nearly doubled their combined share of the European market to 5.1% in the first half of 2025, just shy of Mercedes-Benz's 5.2per cent, the report said. Registrations of Chinese vehicles surged 91% since the start of the year. BYD , Jaecoo, Omoda, Leapmotor and Xpeng were the five names fuelling the surge, with BYD alone registering 70,500 units in the first six months of 2025, a 311per cent jump from a year ago. Stellantis saw the steepest market share decline among major automakers, to 15.3% from 16.7% a year earlier. The second biggest decline came from Tesla , to 1.6% in the half-year period versus 2.4% last year. Registrations of battery electric vehicles (BEV) surpassed one million for the first time in the first half, with a 25per cent rise to 1.19 million units — 17.4per cent of the market. KEY QUOTES "Persistently high prices, geopolitical and economic tensions with Europe's trading partners, and the postpandemic market reality are behind the decline," Felipe Munoz, global analyst at JATO Dynamics, said. "The updated Tesla Model Y has so far failed to provide the expected sales boost for the brand," Munoz said. "At the same time, competition from BYD and Volkswagen Group is making it harder for Tesla to maintain its leadership position."
Mint
an hour ago
- Mint
Trump to outline AI priorities amid tech battle with China
Trump to deliver what aides call a major speech on AI priorities White House AI and crypto czar David Sacks will join his co-hosts on the 'All-In' podcast to highlight AI efforts Trump expected to take more actions in upcoming weeks to help tech giants power AI industry By Jarrett Renshaw and Alexandra Alper July 23 - The Trump administration is set to release a new artificial intelligence blueprint on Wednesday that aims to relax American rules governing the industry at the center of a technological arms race between economic rivals the U.S. and China. President Donald Trump will mark the plan's release with a speech outlining the importance of winning an AI race that is increasingly seen as a defining feature of 21st-century geopolitics, with both China and the U.S. investing heavily in the industry to secure economic and military superiority. According to a summary seen by Reuters, the plan calls for the export of U.S. AI technology abroad and a crackdown on state laws deemed too restrictive to let it flourish, a marked departure from former President Joe Biden's "high fence" approach that limited global access to coveted AI chips. Top administration officials such as Secretary of State Marco Rubio and White House National Economic Adviser Kevin Hassett are also expected to join the event titled "Winning the AI Race," organized by White House AI and crypto czar David Sacks and his co-hosts on the "All-In" podcast, according to an event schedule reviewed by Reuters. Trump may incorporate some of the plan's recommendations into executive orders that will be signed ahead of his speech, according to two sources familiar with the plans. Trump directed his administration in January to develop the plan. The event will be hosted by the Hill and Valley Forum, an informal supper club whose deep-pocketed members helped propel Trump's campaign and sketched out a road map for his AI policy long before he was elected. Trump is expected to take additional actions in the upcoming weeks that will help Big Tech secure the vast amounts of electricity it needs to power the energy-guzzling data centers needed for the rapid expansion of AI, Reuters previously reported. U.S. power demand is hitting record highs this year after nearly two decades of stagnation as AI and cloud computing data centers balloon in number and size across the country. The new AI plan will seek to bar federal AI funding from going to states with tough AI rules and ask the Federal Communications Commission to assess whether state laws conflict with its mandate, according to the summary. The Trump administration will also promote open-source and open-weight AI development and "export American AI technologies through full-stack deployment packages" and data center initiatives led by the Commerce Department, according to the summary. Trump is laser-focused on removing barriers to AI expansion, in stark contrast to Biden, who feared U.S. adversaries like China could harness AI chips produced by companies like Nvidia and AMD to supercharge its military and harm allies. Biden, who left office in January, imposed a raft of restrictions on U.S. exports of AI chips to China and other countries that it feared could divert the semiconductors to America's top global rival. Trump rescinded Biden's executive order aimed at promoting competition, protecting consumers and ensuring AI was not used for misinformation. He also rescinded Biden's so-called AI diffusion rule, which capped the amount of American AI computing capacity that some countries were allowed to obtain via U.S. AI chip imports. In May, Trump announced deals with the United Arab Emirates that gave the Gulf country expanded access to advanced artificial intelligence chips from the U.S. after previously facing restrictions over Washington's concerns that China could access the technology. This article was generated from an automated news agency feed without modifications to text.
