Stories
Mayuresh Joshi Favors Karur Vysya Bank Over RBL Bank Amid Sector Headwinds
- •Marketsmith India's Mayuresh Joshi prefers Karur Vysya Bank over RBL Bank due to consistent earnings and a secure agricultural portfolio.
- •Bandhan Bank remains an underperformer near its 52-week low as clarity is awaited on internal issues.
- •The MSME and microfinance sectors face headwinds including rising interest rates, unsecured loan payout risks, and insurance commission changes.
- •HCLTech delivered solid numbers with a record order book and steady EBITDA margins despite broader global technology concerns.
Key Questions Answered
Mayuresh Joshi favors Karur Vysya Bank because of its consistent earnings delivery and secure agricultural portfolio, which helps mitigate asset quality fears. In contrast, RBL Bank management is expected to stay cautious over the next couple of quarters before turning aggressive later.
Channel checks indicate potential struggles over the next couple of quarters due to three primary headwinds: a rising interest rate scenario accelerating stress in restructured books, payout risks in unsecured loans, and recent changes to insurance commissions negatively impacting lower-ranked NBFCs.
HCLTech maintained its 2.5% guidance for cost and currency while keeping its EBITDA margins steady at 17.5% to 18.5%. The company also reported a record order book alongside fast growth in advanced artificial intelligence.
