Tag Banking Sector

IDFC First Bank Ltd
IDFC First Bank: Signs of Recovery Amid Market Decline & Future Growth Strategies

Business and Industry Overview: 

IDFC First Bank is a private-sector bank in India, based in Mumbai. It was created in 2015 as part of IDFC Limited, a company that originally focused on funding big projects like roads and bridges. In 2018, IDFC First Bank merged with Capital First, a company that gave loans to small businesses and people. This merger allowed the bank to focus on offering services to regular people, such as savings accounts, loans, and credit cards. In 2024, IDFC First Bank merged with its parent company, IDFC Limited, in a reverse merger. This made the bank the main company. Today, IDFC First Bank operates more than 800 branches across India and has many ATMs. The bank also provides digital banking services, making it easy for people to bank online. The bank is known for serving people in rural areas. It offers loans, especially to women. IDFC First Bank has a strong record of recovering loans. This means they have fewer bad loans. The bank also runs programs to help those in need. For example, it has a program called “Ghar Ghar Ration” that provides food to families who were affected by the COVID-19 pandemic. In 2023, the bank became the sponsor for all of India’s home cricket matches. This increased its visibility and helped the bank grow its brand. IDFC First Bank is focused on making banking easier for everyone. It uses technology to improve services and reach more people. The bank is also growing by offering good customer service, expanding its presence, and supporting community programs. 

The Indian banking and fintech sectors are growing fast. The fintech industry is worth US$ 111 billion. By 2029, it is expected to reach US$ 421 billion. This growth is driven by the rise in digital financial services. More people in smaller towns and rural areas are using these services. Digital payments are becoming common. People are using UPI (Unified Payments Interface) for paying bills, shopping, and transferring money. Experts predict that 65% of payments will be digital by 2026. As more people use digital payments, the need for secure data protection grows. Banks have a trust advantage in keeping customer data safe. New fintech companies may team up with banks to meet legal requirements and get banking licenses. Technology is making banking easier. Farmers can now apply for loans online, like the Kisan Credit Card (KCC) loans. This makes the loan process faster. The government is also improving the KYC (Know Your Customer) process to make it easier for people to open bank accounts. New services are being introduced to improve digital banking. In 2023, India saw the launch of the first-ever UPI-enabled ATM. This allows people to withdraw money using their phone. Over 600 banks in India now use UPI for transactions. The total value of digital transactions has already crossed US$ 25 billion. The government is helping this growth. The RBI has started digital projects, like the digital farm loan system and a pilot for digital currency. These projects will make banking quicker and more efficient. The government is also planning a national financial information registry to store financial data securely. Banks are also working with telecom companies. For example, India Post Payments Bank (IPPB) teamed up with Airtel. They offer banking services through WhatsApp, making it more convenient for people. In summary, the Indian banking and fintech sectors are booming. The shift to digital services is helping people access banking more easily. With strong government support and innovation, the future of banking looks bright in India. 

IDFC First Bank has made a strong mark in India by combining traditional banking with modern digital services. After its merger with Capital First, the bank shifted its focus to retail banking. This means it now offers services like personal loans, savings accounts, and credit cards to regular people. The bank makes it easy for customers to bank through mobile apps and online services. It also offers banking in small towns and rural areas, which are often left out by other banks. The bank has a good reputation for being reliable, with low levels of bad loans. It partners with telecom companies to make banking even more accessible, like offering services on WhatsApp. Its focus on innovation, rural banking, and partnerships gives it a competitive edge over other banks. Overall, IDFC First Bank is a strong player in India’s banking sector. 

Latest Stock News: 

IDFC First Bank has started to recover after four days of decline. Despite a tough market, its stock performed better than others in its sector. It reached a high during the day, but the movement of its stock is showing mixed signals. Even though there were some short-term drops, the bank has grown a lot over the past few years. Jefferies, a global financial services company, sees IDFC First Bank as a good growth option compared to other banks. The bank’s stock has been unpredictable. In March 2025, the stock dropped by 3% after the bank announced its quarterly results. The drop was mainly due to higher credit costs, which affected the bank’s profit and assets. In the second quarter of the fiscal year 2025, the bank’s profit fell by 73%, to ₹200.7 crore. However, its Net Interest Income (NII) grew by 21% during the same period. 

In February 2023, IDFC Limited invested ₹2,200 crore in IDFC First Bank, increasing its stake to 40%. Later in September 2023, US-based GQG Partners bought more shares, increasing their ownership to 3.36%. In July 2024, Life Insurance Corporation (LIC) also bought shares, bringing its stake to 2.68%. 

On March 27, 2025, IDFC First Bank shares fell by 1.50% after a block deal. The stock opened at Rs 56.84 on the NSE, down from the previous close of Rs 57. It hit a low of Rs 56.12 during the day and closed at Rs 56.18 around 2 PM. A total of 82.3 lakh shares of IDFC First Bank changed hands in a block deal, but the names of the buyer and seller are not known yet. 

Potentials: 

IDFC First Bank has plans to grow and improve. It wants to make banking easier for everyone. The bank will focus on online banking. This means people can manage their money and accounts on their phones or computers. The bank also wants to give better loan options. It will make it easier for people to get loans. It will also improve savings accounts to make them more helpful. IDFC First Bank is working to reach more people, especially in small towns and villages. It plans to make mobile banking better. This will help people who live far from the bank to still use its services. The bank wants to make paying bills easier, too. It will improve digital payments and work with UPI (Unified Payments Interface). The bank will also look at using new technology like digital money to make payments faster and safer. The bank is also focusing on avoiding bad loans. It will make sure to lend money carefully. This will help the bank avoid losing money and keep making profits. Finally, the bank wants to bring in more money from investors. IDFC First Bank has already received money from companies like IDFC Limited, GQG Partners, and LIC. This will help the bank grow and offer more services. In short, IDFC First Bank wants to grow by improving digital banking, offering better loans, reaching more people, and attracting investors. 

Analyst Insights: 

  • Market capitalisation: ₹ 41,631 Cr. 
  • Current Price: ₹ 56.9 
  • 52-Week High/Low: ₹ 86.1 / 52.6 
  • Stock P/E: 21.7 
  • Dividend Yield: 0.00%
  • Return on Capital Employed (ROCE): 6.93%
  • Return on Equity: 10.1%

IDFC First Bank has shown some concerning signs in recent times. While the bank has been able to report profits, the growth has been slowing down. For instance, its net profit dropped by 53% in the last quarter, showing that earnings have been weaker than expected. Additionally, the bank’s stock price has fallen by about 29% in the past year, which indicates that the market is not very confident in its future performance. One key indicator is the return on equity (ROE), which measures how well a company is using its equity to generate profits. IDFC First Bank’s ROE is at 10.1%, which is lower than many of its competitors, like HDFC Bank and ICICI Bank, which have higher ROE percentages. This lower ROE suggests the bank might not be using its resources as effectively as other banks in the market. Furthermore, IDFC First Bank’s price-to-earnings (P/E) ratio stands at 21.7, which is relatively high compared to other major banks. A higher P/E ratio often means that a stock is more expensive compared to its earnings, which could indicate that the stock might be overvalued at the moment. The bank has also not been paying any dividends to its shareholders. Many investors rely on dividends as a source of income, and the fact that IDFC First Bank hasn’t paid any can be a concern for income-focused investors. Lastly, the bank has high liabilities, which are financial obligations or debts. In the most recent data, the bank’s contingent liabilities were over ₹3 lakh crore, which could be risky for the future if the bank faces financial stress. Given these factors, the bank’s financial health seems to be under pressure, and the stock price has been declining. These signs suggest that the stock may not be a good investment right now for those looking for steady growth or income. 

Kotak Mahindra Bank Ltd
Kotak Mahindra Bank Reaches New High Amid Market Decline – Is It a Strong Buy?

Business and Industry Overview: 

Kotak Mahindra Bank is one of the biggest private banks in India. It started in 1985 as a company that gave loans. In 2003, it became a bank. The main office is in Mumbai. The CEO of the bank is Ashok Vaswani. It is listed in the stock market. The bank helps people open accounts, save money, and take loans. It also offers credit cards and other banking services. Businesses also take loans from the bank and use its services. Rich people use banks to manage their money, invest in stocks, and buy insurance. The bank also helps companies invest and grow their money. Kotak Mahindra Bank has over 1,800 branches and 3,100 ATMs all over India. It is growing fast and using new technology to make banking easy. It allows people to use mobile banking, UPI, and online services. The bank is strong in the market and makes good profits. It competes with big banks like HDFC and ICICI. In 2021, it bought Volkswagen Finance’s car loan business. This helped the bank give more car loans. In the future, it wants to grow bigger, help more people, and use more technology. 

Banks keep money safe and give loans. They help people send and receive money. The RBI makes rules so banks work well. India has many types of banks. Foreign banks come from other countries. Private banks give good service and use new technology. Government banks help people and businesses. Rural banks give loans to farmers and small shop owners. More people now pay online instead of using cash. By 2026, most payments will be online. Banks use new methods to make banking easy. Farmers can apply for Kisan Credit Card (KCC) loans online. In 2023, India got its first UPI-ATM, where people can take out cash without a card. By 2024, 602 banks will use UPI, and people will have about 15 billion online payments. The RBI is making a digital currency for faster payments. The government made KYC rules easy, so opening a bank account is quicker. In 2023, India Post Payments Bank and Airtel started WhatsApp banking, so people can use phones for banking. Banking is growing fast, but fraud is also increasing. FinTech companies are giving more choices, so banks must improve. More people now like online banking, and the government is making new rules to help. Banking in India will keep growing. 

Latest Stock News: 

Kotak Mahindra Bank’s stock is doing well. Mutual funds bought shares worth ₹2,300 crore in February. The stock is trading close to its highest price in the last year. It has started a new upward trend, showing signs of growth. The price is above important moving averages, which is a good sign. The RSI indicator is also moving up, suggesting strong demand. Kotak Mahindra Bank’s stock performed well today, rising by 3.1% and reaching ₹1,997, its highest price in the last year. This means the bank’s stock is growing stronger compared to others in the same sector. In the last two days, it has gone up by 4.01%, showing a steady increase. The stock is also trading above important price levels, which suggests that investors have confidence in it. Over the past year, Kotak Mahindra Bank’s stock has given a return of 15.54%, which is much higher than the Sensex, which increased by only 0.28%. Even though the overall market went down today, Kotak Mahindra Bank’s stock stayed strong. This shows that the bank has good financial health and investors trust its future growth. 

Kotak Mahindra Bank’s stock price went up by 3.1% today and reached ₹1,997, its highest in one year. This means more people are buying its shares because they trust the bank. In the last two days, the stock has gone up by 4.01%, showing a steady rise. Right now, the stock is doing well over short and long periods because it is above important price levels that traders watch. In the past year, the stock has grown by 15.54%, while the Sensex, which tracks many big companies, has only gone up by 0.28%. Today, the overall stock market went down by 0.29%, but Kotak Mahindra Bank stayed strong. This shows that people believe the bank is stable, growing, and a good choice for investment. 

Potentials: 

Kotak Mahindra Bank is embracing new technology to make banking easier and faster. CEO Ashok Vaswani is leading this change by adding AI and digital tools, reducing paperwork, and improving security. Outlining his vision in the 2023 annual report, Uday Kotak highlighted three key priorities: product excellence, customer obsession, and trust. He said the bank is shifting its mindset to achieve these goals. He also expressed his dream of helping India reach a USD 30 trillion economy while calling for a balanced approach to financial regulations. Kotak emphasized that the bank is focused on attracting and nurturing talent, both internally and externally, to better serve stakeholders. He noted positive changes in the bank’s culture and highlighted its role as a major employer, providing 100,000 direct jobs and many indirect opportunities. The bank’s ESG efforts have led to higher ratings and awards. Kotak also shared steps to improve gender diversity and support employees, including infant daycare services for single parents and new mothers, since April 2023. As of March 31, 2023, the bank’s total Assets Under Management (AUM) had reached over ₹4,20,800 crore, with its alternate assets growing by 125% year-on-year to ₹46,077 crore, including undrawn commitments. 

Analyst Insights: 

  • Market capitalisation: ₹ 3,94,682 Cr. 
  • Current Price: ₹ 1,985 
  • 52-Week High/Low:  ₹ 2,000 / 1,544 
  • Stock P/E: 20.0 
  • Dividend Yield: 1.06 % 
  • Return on Capital Employed (ROCE): 7.86 % 
  • Return on Equity: 15.1 % 

Kotak Mahindra Bank has grown well, with profits rising 20.4% per year in the last five years. Its bad loans have reduced from 2.75% in 2021 to 1.38% in 2024, showing better financial health. The bank earns good returns (ROE: 15.1%) but is expensive compared to rivals like HDFC Bank and ICICI Bank. Its revenue has almost doubled from ₹8,626 Cr in 2021 to ₹16,633 Cr in 2024, but it pays a very low dividend (0.10%) and has a high risk due to contingent liabilities (₹7,77,539 Cr). Since the stock price is near its highest level in a year, it is best to hold the stock. Short-term investors can sell some shares to book profits. 

Bandhan Bank Ltd
Bandhan Bank Stock Slumps: Key Challenges & Growth Prospects for Investors

Business and Industry Overview: 

Bandhan Bank started in 2015 as a full bank, but before that, it worked as a small company that gave loans to poor people to help them start businesses. The Reserve Bank of India permitted it to become a bank in 2014, and in 2015, it opened with 501 branches, 50 ATMs, and 2,022 service centres. The bank focuses on helping people who do not have much money, especially those in villages and small towns. It provides savings and current accounts, fixed and recurring deposits, and loans for small businesses, farmers, and even big companies. In 2018, Bandhan Bank joined the stock market, allowing people to buy and sell its shares. The bank grew very fast and became successful because it helped small business owners and women by giving them loans and financial services. It has many branches across India and continues to expand to serve more people. 

Banks keep money safe and give loans. They help people send and receive money. The RBI makes rules so banks work well. India has many types of banks. Foreign banks come from other countries. Private banks give good service and use new technology. Government banks help people and businesses. Rural banks give loans to farmers and small shop owners. More people now pay online instead of using cash. By 2026, most payments will be online. Banks use new methods to make banking easy. Farmers can apply for Kisan Credit Card (KCC) loans online. In 2023, India got its first UPI-ATM, where people can take out cash without a card. By 2024, 602 banks will use UPI, and people will have about 15 billion online payments. The RBI is making a digital currency for faster payments. The government made KYC rules easy, so opening a bank account is quicker. In 2023, India Post Payments Bank and Airtel started WhatsApp banking, so people can use phones for banking. Banking is growing fast, but fraud is also increasing. FinTech companies are giving more choices, so banks must improve. More people now like online banking, and the government is making new rules to help. Banking in India will keep growing. 

Latest Stock News: 

Bandhan Bank’s stock has fallen for two days, and today it dropped 6%, making the share price Rs 139.9. The bank is not doing well compared to other banks. The BSE BANKEX index, which tracks bank stocks, is also down 0.3%, but some banks, like ICICI Bank (+2.6%) and Kotak Bank (+0.5%), are growing. In the last year, Bandhan Bank’s stock fell 28.3%, while the overall bank index went up 1.3%. Other banks like HDFC Bank (+16.7%), Federal Bank (+15.1%), and ICICI Bank (+14.5%) did much better. The BSE Sensex, which tracks the stock market, is at 74,024.9, down 0.1% today. Bandhan Bank’s profit in October-December 2024 fell 41.8% to Rs 4,265 million, but its sales grew 17.4% to Rs 54,787 million. For the full year (FY24), the bank’s profit went up 1.6% to Rs 22,296 million, and revenue increased 18.6% to Rs 188,696 million. Right now, the bank’s P/E ratio is 9.1, which helps investors decide if the stock is cheap or expensive. Even though the bank is making more money, its profit is falling, and its stock is not doing well. 

Potentials: 

Bandhan Bank wants to grow and reach more people across India. It plans to open many new branches, especially in small towns and villages, so that more people can access banking services easily. The bank will provide more loans to small shop owners, farmers, and businesses to help them expand and earn more money. It is working to make online banking faster and simpler so that customers can send money, check their balance, and apply for loans easily from their phones. 

Bandhan Bank is improving its mobile app and website so that people can use banking services anytime, anywhere. It is also making online banking safer by using better technology to protect customers from fraud. The bank is working hard to reduce bad loans by carefully checking if a person or business can repay before giving them money. It will also support borrowers in paying on time so that they do not face financial trouble. 

To attract more customers, Bandhan Bank will offer better interest rates and new financial products that suit different needs. It will follow all government rules and work closely with the Reserve Bank of India (RBI) to stay strong and reliable. By focusing on growth, better service, and safety, Bandhan Bank aims to become one of the most trusted banks in India and help more people build a better future. 

Analyst Insights: 

  • Market capitalisation:₹ 22,845 Cr. 
  • Current Price: ₹ 142 
  • 52-Week High/Low:  ₹ 222 / 128 
  • Stock P/E: 9.20 
  • Dividend Yield: 1.06 % 
  • Return on Capital Employed (ROCE): 7.06 % 
  • Return on Equity: 10.8 % 

Bandhan Bank’s stock is priced lower compared to other big banks, like HDFC and ICICI, which makes it a good buy at the moment. The stock is trading below its book value, which means you might get more value than you’re paying. The bank has reduced its debt, but it still has some issues, such as a high number of bad loans (NPAs) and large liabilities. Despite these problems, the bank is still making a good profit with a return on equity of 10.8%, which is decent. If you buy this stock now, it could rise in value over time, especially since it’s near its lowest price. It might be a good idea to buy the stock if you’re looking for a long-term investment. 

SBI Q3 FY25 Results
SBI Q3 FY25 Results: Strong Net Profit Jumps 83% YoY

State Bank of India Ltd: Overview 

State Bank of India (SBI), established in 1955, is India’s largest public sector bank, with a rich legacy tracing back to the Bank of Calcutta in 1806. Headquartered in Mumbai, SBI operates an extensive network of over 22,405 branches across India and 235 offices in 29 countries, serving more than 45 crore customers. The bank offers a comprehensive range of financial services, including retail and corporate banking, investment banking, asset management, and insurance. SBI’s commitment to technological innovation is evident in its digital platforms like YONO (You Only Need One), which integrates various financial services into a single mobile application, enhancing customer convenience and engagement. The Indian banking industry is experiencing significant transformation, driven by technological advancements, regulatory reforms, and evolving customer expectations. Public sector banks like SBI are pivotal in promoting financial inclusion, especially in rural and semi-urban areas. The sector is witnessing increased competition from private banks and fintech companies, necessitating continuous innovation and customer-centric strategies. Despite challenges such as non-performing assets and economic fluctuations, the outlook for the Indian banking industry remains positive, with opportunities arising from economic growth, infrastructure development, and a burgeoning middle class. 

Latest Stock News 

SBI has maintained its strong position in the domestic banking sector with a sustained market share of over 22%, driven by its extensive reach, customer trust, and value-added services. The bank’s current account balances witnessed a robust growth of 14.22% year-on-year, while total deposits surpassed ₹52 lakh crore, reflecting strong customer confidence. Domestic credit growth stood at 14.06% year-on-year, with significant expansion across various business segments. Whole Bank Advances crossed ₹40 lakh crore, supported by broad-based credit growth exceeding the market average, with the domestic credit-to-deposit ratio at 68.94%. SBI continues to demonstrate industry-leading asset quality, with a credit cost of just 0.24% for the quarter. The stressed book remains well provided for, with a provision coverage ratio (PCR) of 74.66%. Net Non-Performing Assets (NPA) stood at ₹21,378 crore, with additional provisions of ₹29,757 crore that are not included in the PCR, further strengthening the bank’s financial stability. The bank has also made significant strides in digital banking, with over 98% of transactions being conducted through alternate channels. The YONO platform continues to be a key growth driver, accounting for 64% of new savings accounts opened in Q3FY25 and boasting 8.45 crore registered customers. Customer credit has crossed the ₹6 trillion milestones for the first time, with gross advances growing by 10.35% year-on-year. Key international branches, including those in New York, GIFT City, Singapore, DIFC Dubai, and Hong Kong, have significantly contributed to this growth. Additionally, SBI has improved its asset quality, with the gross NPA ratio declining by 9 basis points year-on-year, reflecting its commitment to maintaining financial resilience and sustainable growth. 

Business Segments 

  • Retail Banking: This segment caters to individual customers, offering products like savings and current accounts, personal loans, home loans, and credit cards. SBI’s extensive branch network and digital platforms facilitate widespread access to banking services across urban and rural areas. 
  • Corporate Banking: SBI provides a range of services to corporate clients, including working capital finance, term loans, cash management, and trade finance. The bank supports large, mid-sized, and small enterprises, contributing significantly to industrial and economic development. 
  • Treasury Operations: This segment manages the bank’s investments in government and corporate securities, money market operations, and foreign exchange activities. Effective treasury management enhances SBI’s profitability and liquidity position. 

Subsidiary Information 

  • SBI Capital Markets Limited (SBICAPS): SBI Capital Markets Limited (SBICAPS) is a wholly-owned subsidiary of the State Bank of India, established in 1986, with a primary focus on providing investment banking and corporate advisory services. SBICAPS plays a critical role in advising large corporate, government entities, and financial institutions on mergers and acquisitions, capital raising, and financial restructuring.  
  • SBI DFHI Limited: SBI DFHI Limited is another key subsidiary of the State Bank of India, formed through the merger of Discount & Finance House of India and SBI Gilts Ltd. This entity serves as a primary dealer in the domestic debt market, handling a wide range of financial instruments, including government securities, treasury bills, and money market instruments. SBI DFHI remains a key player in India’s financial markets, supporting the stability and growth of the country’s debt capital market. 
  • SBI Global Factors Limited: SBI Global Factors Limited is a financial services subsidiary of the State Bank of India that specializes in factoring services, offering working capital solutions to businesses through the purchase of receivables. The company plays a crucial role in enabling businesses to improve their cash flow by converting credit sales into instant funds, thus ensuring smooth operational liquidity. 
  • SBI Life Insurance Company Limited: SBI Life Insurance Company Limited is a prominent joint venture between the State Bank of India and BNP Paribas Cardif, focusing on providing a comprehensive range of life insurance products. With a strong distribution network across India, SBI Life has been a key player in the life insurance sector, offering products such as term insurance, endowment plans, pension schemes, and unit-linked insurance plans (ULIPs). 
  • SBI Cards and Payment Services Limited: SBI Cards and Payment Services Limited is a key subsidiary of the State Bank of India, focusing on the issuance of credit cards and providing payment solutions to millions of customers. As one of India’s leading credit card issuers, SBI Cards offers a wide range of credit card products tailored to different consumer segments. With the rapid adoption of digital transactions in India, SBI Cards has seen significant growth in its customer base and transaction volumes. 

Q3 FY25 Earnings 

  • Revenue of ₹124654 crore in Q3 FY25 up by 10.4% YoY from ₹112868 crore in Q3 FY24.  
  • Financing Loss of ₹-17643 crore in this quarter at a margin of -14% compared to -16% in Q3 FY24. 
  • Profit of ₹19484 crore in this quarter compared to a ₹11598 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 112868 124654 350848 439189 
Interest  68092 77397 189981 259736 
Expenses 62653 64890 204303 239750 
Financing Profit -17858 -17634 -43439 -60297 
Financing Margin -16% -14% 12% 14% 
Other Income 33103 43200 122534 155386 
Net Profit 11598 19484 57750 69543 
NPM 10.2% 15.6% 16.4% 15.8% 
EPS 12.4 21.2 62.4 75.2 
Union Bank of India Shares Surge 7% on Q3
Union Bank of India Shares Surge 7% on Q3 Profit Growth and Improved Asset Quality

Union Bank of India Ltd: Overview 

Union Bank Ltd (UBL), established in 1919 and headquartered in Mumbai, is one of India’s leading public sector banks. With a legacy of over 100 years, UBI offers a wide range of banking and financial services, including retail banking, corporate banking, investment banking, and treasury operations. It has total advances of ₹9.5 trillion and deposits worth ₹12.2 trillion. The bank is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) and operates across India with a significant presence in various key cities and towns. UBI plays a crucial role in India’s banking landscape, providing financial services to individuals, small businesses, and large corporations. It has network of about 8574 bank branches and 9080+ ATMs, and is giving employment to 74300+ employees. 

The Indian banking industry is experiencing a transformation with the increasing adoption of digital banking, improved financial inclusion, and regulatory changes. Union Bank, having recently merged with Andhra Bank and Corporation Bank, is focused on strengthening its market position and expanding its digital footprint. The Indian banking sector, which has witnessed robust growth over the years, continues to face challenges such as non-performing assets (NPAs), regulatory pressures, and the need for capital adequacy. It has some branches overseas in Dubai and Sydney, helping to cater the demand there. However, the sector is poised for growth driven by expanding credit demand, digital adoption, and government-led initiatives aimed at improving financial inclusion. 

Latest Stock News 

Union Bank Ltd has showcased steady and sustained growth across its financial performance metrics. Over the past year, credit growth increased by 3.76%, deposits grew by 5.94%, and advances in the Retail, Agriculture, and MSME (RAM) segments rose by 9.26%. The bank reported an impressive 28.24% year-on-year growth in net interest income (NII), reaching ₹9,168 crore for Q3 FY25, supported by a net interest margin (NIM) of 3.08%. 

Union Bank also made significant progress in improving asset quality. The gross non-performing asset (GNPA) ratio dropped to 3.85%, and the net NPA (NNPA) ratio declined to 0.82%, reflecting improved financial health. Credit costs also fell significantly from 1.24% in December 2022 to 0.63% in December 2023. The bank’s profitability and efficiency remain robust, with return on assets at 1.30% and return on equity at 17.75%. The book value per share improved to ₹135.90, while the capital adequacy ratio (CRAR) stood at a strong 16.72%, and the CET-I ratio rose to 13.59%, marking year-on-year improvements of 169 basis points and 188 basis points, respectively. 

Union Bank’s lending activities also expanded significantly. The retail portfolio reached ₹2.02 lakh crore as of December 2024, contributing 22.11% to domestic advances. The agriculture portfolio grew to ₹1.85 lakh crore (20.30% of domestic advances), while the MSME portfolio stood at ₹1.30 lakh crore (14.29% of domestic advances). In the renewable energy sector, credit facilities worth ₹27,269 crore were extended, along with ₹645 crore sanctioned under the “Union Green Miles” initiative to promote electric vehicle financing. Additionally, the bank renewed or reviewed over 5.26 lakh accounts, demonstrating its commitment to customer-centric growth and sustainable business practices. 

Business Segments

  • Retail Banking: UBI’s retail banking division offers a comprehensive range of products and services catering to the individual needs of customers. It has shifted the focus to being more customers centric by using UPI payments, mobile banking apps, online account opening services, etc. These include savings accounts, personal loans, home loans, car loans, credit cards, and wealth management services. The bank’s extensive branch network and digital platforms allow customers to access services seamlessly, contributing to the growth of retail deposits and loans. 
  • Corporate Banking: UBI provides a wide range of services to large businesses, SMEs (small and medium enterprises), and government entities. These include working capital financing, term loans, trade finance, cash management, and project finance. It also offers loan services, ease in transactions for deals. The bank has specialized products designed to meet the unique needs of different industries, including manufacturing, services, and infrastructure.  
  • Treasury Operations: The treasury division of Union Bank manages the bank’s investments in government securities, foreign exchange, and money market instruments. The bank aims to optimize the returns from these investments while adhering to regulatory guidelines and managing risks effectively. The treasury division also plays a vital role in foreign exchange management and assists in hedging currency and interest rate risks for corporate clients. 
  • Digital & Payments Business: Digital banking is one of the core strategic pillars for Union Bank. The bank has invested heavily in digital transformation and offers a range of online and mobile banking services, enabling customers to manage their accounts, transfer funds, pay bills, and invest in financial products with ease. UBI’s initiative for this segment includes UBI mobile banking, UPI, net banking, e-wallets service, etc. 

Subsidiary Information

  • Union Bank of India (UK) Ltd: The UK-based subsidiary of UBI focuses on providing banking services to NRIs (Non-Resident Indians) and customers with business interests in the UK and Europe. The subsidiary helps UBI establish a presence in international markets and serves as a gateway for facilitating cross-border trade and investments. 
  • Union Asset Management Company Pvt Ltd: Union Asset Management Company (AMC) is the asset management arm of UBI, providing a variety of investment products such as mutual funds, exchange-traded funds (ETFs), and portfolio management services (PMS). The AMC focuses on delivering value to investors by offering diversified and professionally managed investment options. 
  • Union Bank of India (Singapore) Ltd:  Union Bank’s Singapore branch serves as a significant player in providing financial services to customers in Southeast Asia. The branch offers a range of corporate and retail banking products, including trade finance, foreign exchange, and term loans, with a particular focus on supporting Indian businesses operating in the region. 
  • Union Finance and Investment Co. Pvt Ltd: A subsidiary engaged in various financial activities, Union Finance provides services such as lending, leasing, and investment management. The company plays a role in UBI’s broader strategy of offering financial products to individuals and businesses. 
  • Union Bank of India Services Ltd:  

Q3 FY25 Earnings 

  • Revenue of ₹27135 crore in Q3 FY25 up by 6.3% YoY from ₹25521 crore in Q3 FY24.  
  • Financing Profit of ₹1274 crore in this quarter at a margin of 5% compared to 5% in Q3 FY24. 
  • Profit of ₹4623 crore in this quarter compared to a ₹3625 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 25521 27135 81163 100376 
Interest  16236 17756 48083 63364 
Expenses 8012 8096 36155 32422 
Financing Profit 1273 1274 -3024 4590 
Financing Margin 5% 5% -4% 5% 
Other Income 4281 4614 15915 17813 
Net Profit 3625 4623 8512 13797 
NPM 14.2% 17.1% 10.5% 13.7% 
EPS 4.9 6.1 12.5 18.1 
Axis Bank Ltd Earnings
Axis Bank Q3FY24: Pioneering Digital Transformation and Expanding Retail Banking in India

Axis Bank Ltd: Overview 

Axis Bank Ltd, established in 1993, is one of India’s largest private sector banks, renowned for its comprehensive suite of financial products and services catering to retail, SME, and corporate clients. The bank operates through an extensive network of over 4,700 branches, 15,000+ ATMs, and a growing digital presence, providing seamless access to banking services across urban and rural India. The bank operates through an extensive network of branches, ATMs, and digital platforms, ensuring seamless access to banking services for its diverse customer base. With a focus on digital transformation, Axis Bank has launched various innovative products and services, such as mobile banking, digital lending, and personalized financial solutions. The bank’s resilience is underpinned by strong financial performance, prudent risk management, and a diversified revenue stream. It continues to invest in technology, human resources, and operational efficiencies to maintain its competitive edge, making it a key player in India’s evolving financial ecosystem. The acquisition of Citibank India’s consumer business has further strengthened its retail portfolio, adding affluent customers and enhancing its credit card segment. India’s banking sector is on a growth trajectory, driven by economic recovery, government initiatives, and increasing digitization. Axis Bank is well-positioned to capitalize on these trends, with its strong focus on innovation, robust capital base, and diversified portfolio. The industry’s favourable outlook and Axis Bank’s strategic initiatives indicate a promising future for the company. 

Latest Stock News (18 Jan, 2025)

Axis Bank recently announced the re-appointment of Prof. Mahendra Dev as an Independent Director on its Board for a second term, reflecting the company’s commitment to maintaining strong governance and leveraging experienced leadership. However, the bank’s recent quarterly earnings have fallen short of market expectations, with weaker-than-anticipated profitability and lower net interest income growth. Several brokerage firms have subsequently revised their price targets for the stock downward, citing subdued performance and concerns over margin pressures. Despite these challenges, Axis Bank remains focused on its growth strategies, including digital transformation and retail segment expansion. Investors are closely monitoring the company’s execution in the coming quarters to assess recovery potential. 

Business Segments

  • Retail Banking: This segment is a cornerstone of Axis Bank’s operations, contributing significantly to its revenue. Retail banking caters to individual customers, offering a wide array of products such as savings and current accounts, fixed and recurring deposits, and various loan products, including home loans, personal loans, vehicle loans, and credit cards. The segment also includes investment services like mutual funds, insurance, and bonds. The bank has strategically expanded its reach through a vast network of branches and digital platforms, ensuring seamless service delivery. Its focus on leveraging technology for personalized banking experiences has further strengthened its position in the retail space, particularly with the growing adoption of its mobile banking and internet banking platforms. 
  • Corporate Banking: Axis Bank’s corporate banking division serves businesses ranging from small and medium enterprises (SMEs) to large corporations. This segment offers a comprehensive suite of services, including working capital loans, term loans, trade finance, and cash management solutions. The bank also provides specialized services like treasury products, Forex management, and advisory services for mergers and acquisitions. The corporate banking division plays a vital role in fostering long-term relationships with businesses by understanding their unique financial needs and providing customized solutions. It also emphasizes sustainable financing, supporting businesses aligned with ESG principles and renewable energy projects. 
  • Treasury & others: The treasury segment focuses on managing the bank’s investments, liquidity, and financial risks. It handles government and corporate securities, foreign exchange, and derivative instruments. Additionally, the treasury division supports the bank’s trading and arbitrage activities. This segment also manages Axis Bank’s capital markets operations, enabling clients to access debt and equity markets. The bank’s treasury activities ensure effective liquidity management, compliance with regulatory requirements, and optimal utilization of funds to maximize returns. 

Subsidiary Information

  • Axis Capital Ltd: This is the bank’s investment banking and institutional equities arm. It provides services such as capital raising through IPOs, QIPs, and private placements, as well as mergers and acquisitions advisory. Axis Capital is recognized for its robust research capabilities and deep market insights, serving institutional investors and corporate clients. 
  • Axis Securities Ltd: This subsidiary operates in the retail broking and investment advisory space. It offers trading services in equity, derivatives, and currency segments, alongside distribution of mutual funds, bonds, and insurance products. Axis Securities also facilitates investments in National Pension System (NPS) and provides portfolio management services, enhancing retail investors’ experience.  
  • Axis Finance Ltd: A non-banking financial company (NBFC), Axis Finance specializes in providing customized financial solutions. It caters to corporate and retail customers with products such as structured financing, loans against property, and personal loans, further diversifying the bank’s lending portfolio. 
  • Axis Trustee Services Ltd: This subsidiary acts as a trustee for various debenture and bond issuances, safeguarding the interests of investors. It ensures compliance with regulatory norms and facilitates the smooth functioning of debt market instruments. 
  • Freecharge Payment Technologies Ltd: Acquired by Axis Bank, Freecharge operates as a digital payment and financial services platform. It offers services like mobile recharges, utility bill payments, and digital wallets, supporting the bank’s digital banking initiatives and enhancing customer convenience. 

Q3 FY25 & Business Highlights 

  • Revenue of ₹32162 crore in Q3 FY25 up by 8.6% YoY from ₹28865 crore in Q3 FY24.  
  • EBITDA of ₹2210 crore in this quarter at a margin of 7% compared to 8% in Q3 FY24. 
  • Profit of ₹6779 crore in this quarter compared to a ₹6520 crore profit in Q3 FY24. 
  • The fee income in Q3 FY25 is ₹5455 crore with 6% growth YoY, the deposits were ₹1,095,883 crore with 9% of YoY increase. 
  • The segment wise loan mix is 60% Retail Loans, 11% SME Loans and about 29% of Corporate Loans, and the loan growth is seen of 9%. 
  • The cost of fund is an important indicator and it has risen to 5.46% in Q3 FY25. 

Financial Summary 

INR Cr. Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 28865 32162 87448 112759 
Interest 15943 18040 43389 61391 
Expenses 10506 11913 30641 40032 
Financing Profit 2416 2210 13418 11336 
Financing Margin 8% 7% 15% 10% 
Net Profit 6520 6779 10919 26492 
NPM 22.5% 21.1% 12.5% 23.5% 
EPS 21.5 21.8 35.2 85.5