Stocks to watch: HDFC Bank, ICICI Bank, LIC Housing, Indiabulls HF | Jefferies highlights summary of key financial stocks for this week.

Stocks to watch: Companies included in the Jefferies report are HDFC Bank, ICICI Bank, LIC Housing Finance, Indiabulls Housing Finance and New India Assurance. HDFC Bank launches Merchant solution, ICICI Bank’s retail home loan portfolio crosses Rs 2 tn, LIC Housing Finance reported profit of Rs 8 bn, up 2% YoY, a tad ahead of estimate led by lower provision and Indiabulls Housing Finance consolidated Q2 FY21 Net Profit declined 54% YoY to Rs 3.2 bn.

HDFC Bank launches Merchant solution:

HDFC Bank has launched “SmartHub Merchant Solutions 3.0” which would allow merchants / self-employed professionals to instantly open current accounts and start accepting payments through both physical and digital channels. The Bank expects to increase its merchant base ten fold to 20 mn in three years.

ICICI Bank’s retail home loan portfolio crosses Rs 2 tn:

ICICI Bank’s Executive Director Mr. Anup Bagchi has said in a media release that the retail home loan portfolio reached Rs 2.1 tn at the end of Sep, +10% over last year, aided by digital initiatives and expansion of footprint in tier 2, 3 and 4 cities.

LIC Housing Finance:

For Q2 FY21, LIC Housing Finance reported profit of Rs 8 bn, up 2% YoY, a tad ahead of estimate led by lower provision. Loans grew 5% YoY, led by 2% disbursal growth. Home loan disbursal grew 2% YoY in 2Q & 38% YoY in Oct. Project loan disbursal grew 80% YoY. Margins & asset quality were stable QoQ. The Collection in non morat book stood at 96% seems fair while clarity on morat book's (25% of loans) collection is important to understand. Buffer provision of 0.1% is low.

Indiabulls Housing Finance:

For Q2 FY21, Consolidated Net Profit declined 54% YoY to Rs 3.2 bn, led by a 26% YoY decline in total income. Gross NPA ratio stood at 2% (2.2% including cases pertaining to SC dispensation). Collection efficiency for Oct-20 stood at 96%.

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New India Assurance:

Net Profit for Q2 FY21 rose 5% YoY to Rs 5.6 bn, led by a 12% YoY growth in net earned premiums for the quarter. For Q2 FY21, the combined ratio improved to 108.4% (vs 117% for Q2 FY20). Solvency margin stood at 214%.