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Economic Times
6 days ago
- Business
- Economic Times
Bullish on private banks; 3 stocks to bet on: Rajat Sharma
Synopsis Rajat Sharma is bullish on private banking, anticipating benefits from new tax policies and potential rate cuts, favoring HDFC Bank, Axis Bank, and Federal Bank. He's also optimistic about the IT sector, citing attractive valuations for companies like Infosys and TCS, expecting increased US spending to boost their performance. He believes these tech giants will remain core portfolio components. Rajat Sharma, Founder & CEO, Sana Securities, says he favours private banking, highlighting HDFC Bank, Axis Bank, and Federal Bank. These banks benefit from non-interest income. Sharma is also optimistic about the IT sector, noting attractive valuations for companies like Infosys and TCS. Increased spending in the US will benefit Indian IT firms. He believes these tech giants will remain core portfolio components. ADVERTISEMENT Which themes are looking good to you right now? What are you bullish on? Rajat Sharma: Yes, in terms of themes, clearly with it is almost a given that next week there will be a rate cut in the MPC's meeting, so banking of course is one sector that I have been bullish on for a very long time because private banking in particular has already anyways been trading fairly cheap compared to a lot of the other pockets of the market. And with RBI's meeting next week with where inflation is, it is a given that there would be a 25 bps rate cut, so that would be an additional benefit which the banking sector will get. There is optimism over earnings; only banks have disappointed: Nitin Bhasin But the major reason why I am bullish on banking, in particular private banking, is because the Union Budget that we had this year which increased the tax slabs and made income up to Rs 12 lakh tax-free, the benefit of that you will start seeing from the FY26 which is the financial year which has just started. So, while a lot of people are talking about consumption spending going up and discretionary spending going up, a clear beneficiary, the first beneficiary and the biggest beneficiary of this new tax policy would be banking because that is where money will come in the first place. CA Rudramurthy BV on crucial Nifty levels to watch; 2 stocks to buy If you talk about things that are working for the bank, the tax policies, the new tax structure is really favourable, repo rate will be revised to 5.75% so more money in the hands of the banks and over the last two-three years also tax policies have been changed in such a way that a lot of the advantage is given to mutual funds where people were taking their money from banks, particularly debt mutual funds which got indexation benefit and 20% tax post that – has been taken away. Gradually, a lot of policies have started favouring banking and I like private banking. The top picks I have in that sector would be clearly HDFC Bank and Axis Bank which also by the way get a lot of their revenue from non-interest income, another area of banking which I am really positive on, HDFC and Axis both get about 18% to 19% of their total income from fee-based income distribution of third-party products, mutual funds, the AMC business, and the other bank I am bullish on is Federal Bank. So, these three banks and clearly a week before the MPC meeting banking is definitely one sector which I am really bullish on and bullish on for the next three, four, five years kind of perspective. India still remains an underbanked country. ADVERTISEMENT What is your view on the IT sector? Do you continue to be optimistic on that one? And also, how do you see Indian IT companies navigating the whole AI transition play? Rajat Sharma: If you look at the history of the Indian IT sector, it always trails the US IT. Whatever happens there both in terms of development and adoption to new technology whether it was digital around a decade back or it is AI now and also in terms of earnings and valuations, so while US tech companies have run up a lot in the last one year or so, Indian tech has been struggling mainly because there was a negative sentiment around Indian IT companies, still relying on cloud and digital and basically the legacy business of programming and not really adopting to the AI revolution. In fact, because of AI, there were a lot of job cuts which we saw at Infosys and stuff. So, my view is that they got affected because there was a curtailed spending in the US on fears of a recession in US markets on account of Trump's tariffs policies or whatever. Now US and European companies have started spending more, a trend which we have started seeing and given where Indian IT companies are, the large IT companies, Infosys and TCS and Coforge and Mphasis a lot of these companies will benefit from increased spending in the US. ADVERTISEMENT I was looking at Infosys, the dividend yield is almost close to 2.75%. For tech companies to be trading at 22-24 kind of price to earnings multiple is a very attractive level to buy. These companies are not going anywhere. They are, were, and will always be part of the core portfolio in India. They will be part of Nifty for all times to come, as would a lot of these large tech companies. So, this is one sector which from a valuation perspective is really attractive and things should turn around for them given that the whole tariff business is behind us and there is no fear of a recession in the US as much as there was some time back. 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Business Standard
27-05-2025
- Business
- Business Standard
We have won Ranji, now we have to play test matches: Federal Bank MD & CEO
Federal Bank has to enter the league of big private sector banks in the next 7-10 years, says KVS MANIAN, MD & CEO, Federal Bank. In a face-to-face interview with Manojit Saha and Subrata Panda in Mumbai, he talks about mid-yielding assets being the focus area of the lender, along with boosting fee income and strengthening the current account deposit base. Edited excerpts: You took charge in September last year. What is the vision you have for the bank? Federal Bank as an old private sector bank is leagues ahead of most of the banks. It has done the best in this cohort of banks. But it has not reached the cohort of the large private sector banks. We want to be the fifth largest private sector bank, which puts me in the big league of the private sector banks. We have 18–20 per cent market share in Kerala... it has a huge regional strength and now we want it to be a more nationally recognised bank. We are halfway there, but we want to be fully there. What are the biggest challenges you face? Declining interest rates are a challenge for all banks. Broadly, if the interest rate was in the upward cycle, many of the initiatives I want to do would have been easier, but in this environment there is a downward pressure on the yields. Secondly, the brand, the team, and the people have to make the transition from playing the league matches to test matches. We have won the Ranji Trophy, but now we have to play the test matches. This is the main job to be done. Where do you see your total business in the next few years? Overall, we should be growing in the mid to late teens, depending on the market environment. Which are the areas where you want to improve? We are looking at three areas- first we have to get the liability story right, and particularly, the current account story right. Our current account is at 6 per cent of our deposit base. For most banks, it is in the order of 12–15 per cent. So, we would want the 6 per cent to grow to 10 per cent and beyond. If we get this right, it solves our cost of funds problem, changes net interest margin, among other things. On the asset side, our credit culture is very good. Our cost of credit has been reasonable. There is a DNA of the bank in terms of what risks it takes. I do not want to revolutionise it, but evolution is good. Overall our book currently is low risk, low yield. I would want to shift it to medium risk, medium yield. If I try to do much, it will become revolutionary and I do not want to derail it. It is a strong point of the bank. So, we are focusing more on loan against property (LAP), used commercial vehicle financing such that the risk does not change significantly, but the yield is higher. So, the second thing I am focusing on is moving the bank to a medium risk, medium yield business. Thirdly, we want to improve our fee income. If you benchmark us, we have a gap from the big players. Fee income largely is trade forex, wealth management, card fees, etc. So, there are opportunities to grow this. We want to grow fee income by 25–30 per cent run rate. What is the strategy you have adopted for your corporate book? We will go after the mid corporates. We do not want to go after the really large ones. Given our cost of funds, we can be competitive in the mid-market segment. At the very top end, the pricing gets too fine, and we do not make money, and we do not get any cross sell. But in mid-corporates, we will be relevant, and we will get the current accounts of those companies, trade, forex, etc. Overall also, we are focused on SME and small businesses. Where do you want your retail corporate mix to be? Currently, 60 per cent is retail and we want to increase it to 70 per cent in the next 2-3 years. Your home loan growth has been slow… I have to overall balance my growth such that my medium yielding assets grow faster, and low yielding assets grow slower and home loans sit in the low yielding assets so I will grow them slightly slower. We will be opportunistic about the high yielding assets if the environment clears. Credit cards will grow, and we will continue to grow that. Personal loans, and microfinance loans we will judge the market and credit quality and take a call. My sense is for another two quarters microfinance will see some pressure. Are you open for inorganic growth in the microfinance segment? In general, we are open for inorganic growth. Having said that, we will never have our microfinance more than 5 per cent of our book. I am not a fan of the barbell kind of strategy. Microfinance is a segment we will be in but we will moderate our ambition. Also, our overall unsecured book should not be more than 10–15 per cent of our book in our medium term. What is your strategy for your credit card portfolio? We just have a little over 1 per cent market share in credit cards and we want to drive it to 4-5 per cent in 3–5 years. We also want to make sure that our sourcing is balanced. We work with fintechs for sourcing cards, we do co-branded cards, and organic cards. Currently, our organic cards are lower than our fintech sourced cards. We want to have 50 per cent organic cards, and 50 per cent sourced from fintechs. And organic cards will be to our existing customers largely. Cross sell to our existing customers is quite low currently. As we acquire more customers, our opportunity to cross will be more. What are your plans for wealth business, especially from the NRI side? Our NRI asset under management (savings accounts + term deposits) is close to ~90,000 crore. But we do not have their wealth business because historically we are not focused on their wealth side of business. So, there is a huge opportunity. When I talk about wealth business, I am not referring to private banking. I am talking about the mass affluent segment, where products are simpler. Do you want to get into the AMC business? In the medium to long term, yes. But not in the short term. Our journey to be a universal bank is perhaps a decade-long journey. So, the journey to be a large private sector bank is a decade-long? It's a 7–10 year journey. What are your branch expansion plans? Forty per cent of our current branch network is in Kerala. And 60 per cent is outside Kerala. It's not that we are only Kerala centric. We are no more a regional bank. We will follow adjacent states' strategy when it comes to branches. Adjacent states of Kerala are Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra.. we will grow the brand here. Then we will look at the top 10 GDP states and grow there. Thirdly, we will also focus on the big metro markets. We will follow this strategy for the next 3–5 years. We will get to about 2,000 branches in three years. What is your gold loan strategy? The new draft circular on gold loans is quite robust, and it is in line with the practices we follow. The earlier circular was tighter on some of the things and impacted our volumes. Now, we will get back the growth trajectory in our gold loan business. We are awaiting RBI's final guidelines. From our point of view, we are somewhat unique because both of us are listed. Right now, there is no decision. We have 26 per cent stake in the company, and we have an RBI approval to take it to 30 per cent. The application to the insurance regulator is in the process.
Business Standard
23-05-2025
- Business
- Business Standard
Federal Bank Anchors the Savings Narrative with 'Savings Ki Vidya' Campaign
BusinessWire India Mumbai (Maharashtra) [India], May 23: Federal Bank, a leading private sector Bank, launches its latest integrated marketing campaign titled, Savings Ki Vidya, to prime up its deposit books. The new campaign 'Savings ki Vidya', featuring acclaimed actress and brand ambassador Vidya Balan in a refreshing new role, carves out a Category space in the Consumer's mind by setting up a refreshing narrative for savings aka deposit mobilization. The campaign elevates the Rishta Aap Se Hai, Sirf App Se NahiR storyline, reinforcing that when it comes to smart saving, great service and meaningful relationships create lasting value. It captures slice-of-life moments, where "it skips our mind," and someone who loves us nudges us to save smart in each of those moments. The campaign stars the versatile Vidya Balan, who brings her signature authenticity, charm and wit to guide her friends toward smart saving choices. The humour in the campaign cuts across demographics and geographies. The unambiguous takeaway is, all good things begin with savings, the inception of which is in a "Rishta" with Federal Bank. "Savings Ki Vidya, shifts the narrative to long-term relationships with Federal Bank, which is known for its great service. Opening a savings account with us is the beginning of all things you may want to do thereafter. The campaign steps aside from tactical conversations around product features or interest rates and owns the "act of saving". This allows for an origami kind of a model, where at different points in time, sprint runs of specific aspects of savings/current account or card features or interest rates for specific segments can be amped up. You simply can't miss "The Vidya" for a moment in this warm, witty, and winning narrative. The campaign is a tributary to Federal Bank's core essence, 'Rishta Aap Se Hai, Sirf App Se NahiR' , and reflects on the strength of the Bank's team and their ability to deliver service excellence - that's the calling card to opening accounts with the Bank. Ms. Vidya Balan, our brand ambassador, made it easy to occupy the space of conscious decision making, through referential "knowledge". In many ways, she is alluding to her own experience of the brand, which began when she became a customer first and the many interactions with our team thereafter over the past few months. The authenticity of emotions and experiences Vidya has felt is seen in the happy storytelling. Savings ki Vidya is a multi-bit handle and various accessories can be locked basis the need of the quarter for building the deposits narrative and shoring up business," said M V S Murthy, Chief Marketing Officer from Federal Bank. "Federal Bank is maxing the potential of working with me as their ambassador. The witty word play around my name is almost serendipitous, given that knowledge helps us make smart choices that lead to prosperity, and it's the everyday moments that make this campaign relatable. A simple storyline that reinforces that those who care about us look out for us. I've experienced the Federal Bank ethos of Human at the Core and Digital to the Fore firsthand when I opened an account with them, which showed me that they mean it when they say, Rishta Aap Se Hai, Sirf App Se NahiR," said Vidya Balan, Bank's Brand Ambassador. The films are supported by an original music score, specially curated to reflect the campaign's tone -- playful, modern, and rooted in everyday life. 'Savings ki Vidya' is a 360-degree campaign, with visibility across TV (TVC), Digital and social media, Outdoor (OOH), Print advertisements, Branch-level activation and branded merchandise. Additionally, the films will be dubbed into multiple languages to ensure wider reach and resonance with diverse audiences. The media plan promises to create a significant buzz across platforms. The link to the video ad: Savings Ki Vidya - Efforts Aur Paise Donno Bachao - Savings Ki Vidya Koi Tujhse Seekhe -
Economic Times
23-05-2025
- Business
- Economic Times
Savings Ki Vidya' campaign by Federal Bank: A fresh approach to savings
Federal Bank, a leading private sector bank, launches its latest integrated marketing campaign titled Savings Ki Vidya, featuring acclaimed actress and brand ambassador Vidya Balan. Designed to prime up its deposit books, the new campaign Savings ki Vidya, gives a fresh spin to this category by setting up a refreshing narrative for savings or deposit mobilisation. The campaign elevates the ' Rishta Aap Se Hai, Sirf App Se Nahi' R storyline, reinforcing that when it comes to smart saving, great service, and meaningful relationships create lasting value. It captures slice-of-life moments, where 'it skips our mind', and someone who loves us nudges us to save smart in each of those moments. The campaign stars the versatile Vidya Balan, who brings her signature authenticity, charm, and wit to guide her friends towards smart saving choices. The humour in the campaign cuts across demographics and geographies. The unambiguous takeaway is, all good things begin with savings, the inception of which is in a ' rishta' with Federal Bank. Savings Ki Vidya, shifts the narrative to long-term relationships with Federal Bank. Opening a savings account with the Federal Bank is only the beginning. The campaign steps aside from tactical conversations around product features or interest rates and owns the act of saving. This allows for an origami kind of a model, where at different points in time, sprint runs of specific aspects of savings/current account or card features or interest rates for specific segments can be amped up. The campaign is a tribute to Federal Bank's core essence, ' Rishta Aap Se Hai Sirf App Se Nahi' , and reflects on the strength of the bank's team and their ability to deliver service excellence – that's the calling card to opening accounts with the bank. According to the bank's spokesperson, Balan, the brand ambassador, made it easy to occupy the space of conscious decision making, through referential 'knowledge'. In many ways, she alludes to her own experience of the brand, which began when she became a customer first and the many interactions with the team thereafter over the past few months. The authenticity of emotions and experiences Balan has felt is seen in the happy storytelling. 'Savings ki Vidya is a multi-bit handle and various accessories can be locked basis the need of the quarter for building the deposits narrative and shoring up business,' said M V S Murthy, Chief Marketing Officer from Federal Bank. 'Federal Bank is maxing the potential of working with me as their ambassador. The witty word play around my name is almost serendipitous, given that knowledge helps us make smart choices that lead to prosperity, and it's the everyday moments that make this campaign relatable. A simple storyline that reinforces that those who care about us look out for us. I've experienced the Federal Bank ethos of 'Human at the Core and Digital to the Fore' firsthand when I opened an account with them, which showed me that they mean it when they say, Rishta Aap Se Hai, Sirf App Ae Nahi,' said Vidya Balan, Bank's Brand films are supported by an original music score, specially curated to reflect the campaign's tone — playful, modern, and rooted in everyday ki Vidya is a 360-degree campaign, with visibility across TV (TVC), digital and social media, Outdoor (OOH), Print advertisements, branch-level activation, and branded merchandise. Additionally, the films will be dubbed into multiple languages to ensure wider reach and resonance with diverse audiences. The link to the video ad: Savings Ki Vidya - Efforts Aur Paise Donno Bachao - Savings Ki Vidya Koi Tujhse Seekhe - Disclaimer: The views and opinions expressed in the story are independent professional judgment of the experts and we do not take any responsibility for the accuracy of their views. The brand is solely liable for the correctness, reliability of the content and/or compliance of applicable laws. The above is non-editorial content and TIL does not guarantee, vouch or endorse any of it. Please take all steps necessary to ascertain that any inform
Time of India
23-05-2025
- Business
- Time of India
Savings Ki Vidya' campaign by Federal Bank: A fresh approach to savings
Federal Bank, a leading private sector bank, launches its latest integrated marketing campaign titled Savings Ki Vidya , featuring acclaimed actress and brand ambassador Vidya Balan. Designed to prime up its deposit books, the new campaign Savings ki Vidya, gives a fresh spin to this category by setting up a refreshing narrative for savings or deposit mobilisation. The campaign elevates the ' Rishta Aap Se Hai, Sirf App Se Nahi' R storyline, reinforcing that when it comes to smart saving, great service, and meaningful relationships create lasting value. It captures slice-of-life moments, where 'it skips our mind', and someone who loves us nudges us to save smart in each of those moments. The campaign stars the versatile Vidya Balan, who brings her signature authenticity, charm, and wit to guide her friends towards smart saving choices. The humour in the campaign cuts across demographics and geographies. The unambiguous takeaway is, all good things begin with savings, the inception of which is in a ' rishta' with Federal Bank. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like War Thunder - Register now for free and play against over 75 Million real Players War Thunder Play Now Undo Savings Ki Vidya, shifts the narrative to long-term relationships with Federal Bank. Opening a savings account with the Federal Bank is only the beginning. The campaign steps aside from tactical conversations around product features or interest rates and owns the act of saving. This allows for an origami kind of a model, where at different points in time, sprint runs of specific aspects of savings/current account or card features or interest rates for specific segments can be amped up. The campaign is a tribute to Federal Bank's core essence, ' Rishta Aap Se Hai Sirf App Se Nahi' , and reflects on the strength of the bank's team and their ability to deliver service excellence – that's the calling card to opening accounts with the bank. According to the bank's spokesperson, Balan, the brand ambassador, made it easy to occupy the space of conscious decision making, through referential 'knowledge'. In many ways, she alludes to her own experience of the brand, which began when she became a customer first and the many interactions with the team thereafter over the past few months. The authenticity of emotions and experiences Balan has felt is seen in the happy storytelling. Live Events 'Savings ki Vidya is a multi-bit handle and various accessories can be locked basis the need of the quarter for building the deposits narrative and shoring up business,' said M V S Murthy, Chief Marketing Officer from Federal Bank. 'Federal Bank is maxing the potential of working with me as their ambassador. The witty word play around my name is almost serendipitous, given that knowledge helps us make smart choices that lead to prosperity, and it's the everyday moments that make this campaign relatable. A simple storyline that reinforces that those who care about us look out for us. I've experienced the Federal Bank ethos of 'Human at the Core and Digital to the Fore' firsthand when I opened an account with them, which showed me that they mean it when they say, Rishta Aap Se Hai, Sirf App Ae Nahi,' said Vidya Balan, Bank's Brand Ambassador. The films are supported by an original music score, specially curated to reflect the campaign's tone — playful, modern, and rooted in everyday life. Savings ki Vidya is a 360-degree campaign, with visibility across TV (TVC), digital and social media, Outdoor (OOH), Print advertisements, branch-level activation, and branded merchandise. Additionally, the films will be dubbed into multiple languages to ensure wider reach and resonance with diverse audiences. The link to the video ad: Savings Ki Vidya - Efforts Aur Paise Donno Bachao - Savings Ki Vidya Koi Tujhse Seekhe -
