Five stocks in the banking sector that investors should keep an eye on today!

Five stocks in the banking sector that investors should keep an eye on today!

by 5paisa Research Team Last Updated: 2022-04-07T11:26:27+05:30

The banking sector kickstarted the week driven by the mega-merger of HDFC Ltd with HDFC Bank. After gaining 3.5% the same day. The sector saw some profit booking and sell-off amid weak global clues. With the banking stocks releasing their quarterly numbers, the sector is in action. Yes Bank, HDFC Bank, Union Bank, Canara Bank and Bandhan bank are the stocks to watch out for. Let us see why!

Yes Bank:  The bank released its Q4 numbers which showed a growth of 8.8% in Net advances on YoY basis at Rs 181508 crore. On a sequential basis, net advances grew by 3%. Deposits on the other hand grew by 21.1% and 7.1% on YoY and QoQ basis respectively at Rs 197281 crore. The liquidity coverage ratio (LCR) stood at 114.6% while the CASA ratio stood at 31.8% for the bank. The stock rallied 12.83% in yesterday’s s session, the second-biggest gainer in the “A” Group. Today, the stock is still rallying at Rs 16.25, a gain of 10.62% Rs 1.56 over its previous close.

HDFC Bank: The company in its board meeting held on April 6, proposed to raise funds by issuing Perpetual Debt Instruments (part of Additional Tier I capital), Tier II Capital Bonds and Long-term Bonds up to a total amount of Rs. 50,000 crore for the next twelve months through private placement mode. The proposal will be considered at its ensuing Board meeting to be held on April 16, 2022. Meanwhile, Moody’s Investors Services has affirmed its Baa3 credit rating and said its outlook on the bank is “Stable” while considering the financial impact of the proposed merger. At 9:35 am HDFC Bank was trading at Rs 1529 down 1.41% or Rs 21.80 per share.

Union Bank of India: The bank has executed an agreement on April 06, 2022, for the sale of its 8% stake in India SME Asset Reconstruction Company Limited in favour of Dhansamridhi Finance Pvt Ltd. The said stake sale is however subject to obtaining required regulatory approvals. The PSU stock was in action since the beginning of the month. The stock has surged 12.21% in the last one week. In the morning session Union Bank was trading at Rs 44.10, up 1.03% or Rs 0.45 per share.

Canara Bank: The PSU bank has executed a Share Purchase Agreement, on April 6, for the sale of entire equity stake of 4% in Mis India SME Asset Reconstruction Company Limited (ISARC). Canara Bank’s 4% holding in the asset reconstruction company comprised 4,000,000 shares of Rs 10 each. The bank proposes to sell its stake at Rs 9.8 per share for total consideration of Rs 3.92 crore. In the morning session, Canara Bank was trading at Rs 249.20, up 1.30% or Rs 0.52 per share.

Bandhan Bank: The retail bank’s loan book crossed Rs one lakh crore mark for the first time in the quarter ended March 31, 2022. The loan book registered a jump of 16% on YoY basis, while the deposits stood at Rs 96331 crore with a growth of 24% on YoY basis. The CASA ratio stood at 41.6% for the bank for the same period. Today, at 9:40 the stock is trading at 317.35 down 0.73% or Rs 2.30 per share.


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