MET INSTITUTE OF MANAGEMENT

Financial products
Equities
Swati Ahuja
Roll No. !
"FSI
#OUSING SE$TOR
%& 'I$
'I$ #ousin( Finance 'td. is one o) the lar(est #ousin( Finance co*pan+
in India. Incorporated on %,th -une %,., under the $o*panies Act/ %,01/
the co*pan+ was pro*oted 2+ 'I$ o) India and went pu2lic in the +ear
%,,3
& #4F$
#ousin( 4e5elop*ent Finance $orporation 'i*ited 6#4F$ 'td.& was
esta2lished in %,77 with the pri*ar+ o2jecti5e o) *eetin( a social need o)
encoura(in( ho*e ownership 2+ pro5idin( lon(8ter* )inance to households
A pioneer and leader in housin( )inance in India/ since inception/ #4F$ has
assisted *ore than 3.3 *illion custo*ers to own a ho*e o) their own/
throu(h cu*ulati5e housin( loan appro5als o) o5er Rs. 0.11 trillion and
dis2urse*ents o) o5er Rs. 3.01 trillion as at March 9%/ !%9.
9&
"AN:ING SE$TOR
%& I$I$I
I$I$I "an; was ori(inall+ pro*oted in %,,3 2+ I$I$I 'i*ited/ an Indian
)inancial institution/ and was its wholl+8owned su2sidiar+
I$I$I "an; is India<s lar(est pri5ate sector 2an; with total assets o) Rs.
0/917.,0 2illion 6US= ,, 2illion& at March 9%/ !%9 and pro)it a)ter ta>
Rs. .9.0 2illion 6US= %/099 *illion& )or the +ear ended March 9%/ !%9.
The "an; has a networ; o) 9/1!9 2ranches and %%/%1 ATMs in India/
and has a presence in %, countries/ includin( India.
& A?IS
A>is "an; is one o) the )irst new (eneration pri5ate sector 2an;s to ha5e
2e(un operations in %,,3. A>is "an; is the third lar(est pri5ate sector
2an; in India.
@ith a 2alance sheet siAe o) Rs.9/3!/01% crores as on 9%st March !%9/
A>is "an; has achie5ed consistent (rowth and sta2le asset qualit+ with a
0 +ear $AGR 6!!,8%9& o) 1B in Total Assets/ 3B in Total 4eposits/
7B in Total Ad5ances and 97B in Net Cro)it.
9& :OTA:
Esta2lished in %,.0/ the :ota; Mahindra (roup has 2een one o) India<s
*ost reputed )inancial con(lo*erates. In Fe2ruar+ !!9/ :ota; Mahindra
Finance 'td/ the (roup<s )la(ship co*pan+ was (i5en the license to carr+
on 2an;in( 2usiness 2+ the Reser5e "an; o) India 6R"I&. The 2an; has
o5er 99 2ranches and a custo*er account 2ase o) o5er .7 *illion.
SourceD NSE 4ateD %%EE!%9 %0D0D!!
'I$ #ousin( Finance 'i*ited has in)or*ed the E>chan(e that S*t
Sunita Shar*a has 2een appointed as Mana(in( 4irector F $hie)
E>ecuti5e O))icer o) the $o*pan+ in the capacit+ o) whole ti*e
E>ecuti5e 4irector with e))ect )ro* No5e*2er !0/ !%9 in the place o)
Shri G : Shar*a. This led to a dip in the current price on 9E%%E!%9.
'I$ #ousin( Finance lost .77B to Rs !%.0! at %3D. IST on "SE
a)ter a 2loc; deal o) %!.70 la;h shares was e>ecuted on the counter on
"SE at Rs !!.70 per share at %9D3. IST. Thus a(ain a dip in the
price on 7E%%E%9.
Gross NCAs in indi5idual se(*ent was Rs 973 crore or !.31B as on
Septe*2er 9!/ !%9 as a(ainst Rs 3!1 crore or !.1%B as on Septe*2er 9!/
!%. . Thus leadin( to a increase in closin( price.
On "SE/ %0.79 la;h shares were traded in the counter as a(ainst a5era(e
dail+ 5olu*e o) .,% la;h shares in the past two wee;s on 7E%%E%9 leadin(
to hi(hest rise in turno5er in the third quarter.
4urin( the quarter/ the co*pan+ dis2ursed a total o) Rs. 0,37 crore
as a(ainst Rs. 0.9. crore )or the sa*e period last +ear. 4is2urse*ents
in the de5eloper loan se(*ent were Rs 10 crore as a(ainst Rs. %%
crore )or the sa*e period last +ear. 4ue to a 2etter per)or*ance in
!%9 the 5olu*e traded increased.
LIC
Net Interest Mar(ins )or the si> *onths ended Septe*2er 9!/ !%9 stood at
.1B a(ainst .%9B )or the correspondin( period ended Septe*2er 9!/
!%. This *eant a 2etter per)or*ance thus a increase in share price and
*ore de*and leadin( to rise in turno5er.
'I$ #ousin( Finance lost .77B to Rs !%.0! at %3D. IST on "SE a)ter a
2loc; deal o) %!.70 la;h shares was e>ecuted on the counter on "SE at Rs
!!.70 per share at %9D3. IST.
On "SE/ %0.79 la;h shares were traded in the counter as a(ainst a5era(e
dail+ 5olu*e o) .,% la;h shares in the past two wee;s. Thus on the sa*e
date that is 7E%% there was a dip in close price and rise in turno5er.
HDFC
Oct % !%9
#4F$ lost !.9.B to Rs .%0.0! at %9D01 IST on "SE a)ter net pro)it rose %!B to
Rs %11.99 crore on %..B (rowth in total inco*e to Rs 0,09.,. crore in
H Septe*2er !%9 o5er H Septe*2er !% a)ter which there was a )all in
the price. The results were 2elow e>pectations.
4ec %7 !%9 D
Slowdown in housin( industr+/ R"I polic+ e>pectation i*pactin( #4F$ stoc;sD G
$ho;;alin(a*
4ec %, !%9 #4F$ slash ho*e loan rates
Oct % !%9
#4F$ lost !.9.B to Rs .%0.0! at %9D01 IST on "SE a)ter net pro)it rose %!B to
Rs %11.99 crore on %..B (rowth in total inco*e to Rs 0,09.,. crore in
H Septe*2er !%9 o5er H Septe*2er !% a)ter which there was a )all in
the turno5er.
No5 , !%9D News
#ousin( 4e5elop*ent Finance $orporation rose %.9%B to Rs .0.%! at
%!D00 IST on "SE a)ter two 2loc; deals a((re(atin( ,.0 la;h shares were
e>ecuted in the counter on "SE.
4ec % !%9D
#4F$ H net pro)it rises %!B to Rs %11 cr Net interest inco*e increased
%3 percent on +earl+ 2asis to Rs %/07, crore in the quarter (one 2+. Inco*e
)ro* operations (rew %9. percent to Rs 0/.0,.%, crore durin( Septe*2er
quarter )ro* Rs 0/%70.93 crore in a +ear a(o period.
Oct % !%9
#4F$ lost !.9.B to Rs .%0.0! at %9D01 IST on "SE a)ter net pro)it rose %!B to
Rs %11.99 crore on %..B (rowth in total inco*e to Rs 0,09.,. crore in
H Septe*2er !%9 o5er H Septe*2er !% a)ter which there was a )all in
the price and turno5er.
Net pro)it o) #ousin( 4e5elop*ent Finance $orporation rose %!.!%B to Rs
%11.99 crore in the quarter ended Septe*2er !%9 as a(ainst Rs %%0%.% crore
durin( the pre5ious quarter ended Septe*2er !%. Sales rose %..3B to Rs
0,30.,3 crore in the quarter ended Septe*2er !%9 as a(ainst Rs 01,.30 crore
durin( the pre5ious quarter ended Septe*2er !%. This led to a rise in the closin(
price and turno5er on % oct !%9.
ICICI
Oct %1 !%9D
FIIs slash holdin( in shares o) , 2an;s/ includin( I$I$I "an;/ #4F$ "an;/ S"II
sta;e in up/ )ollowin( which price reduced on %7 oct.
Oct %1 !%9D
FIIs slash holdin( in shares o) , 2an;s/ includin( I$I$I "an;/ #4F$ "an;/ S"II
sta;e in up/ )ollowin( which turno5er reduced on %7 oct.
4ATE 0 O$T %9
Ro2ust (rowth in retail loans helped I$I$I "an; to report ! per cent (rowth in net
pro)it to Rs /90 crore in the -ul+8Septe*2er quarter.
No5 %. !%9
I$I$I "an; hits o5erseas 2ond *ar;et a(ain/ *a+ raise at least =0!! *n
4ateD %E9!E!%9
Most 2an;s li;e S"I/ I$I$I and A>is "an;/ )ail to push R"I<s $CI lin;ed 2onds
Oct %1 !%9D
FIIs slash holdin( in shares o) , 2an;s/ includin( I$I$I "an;/ #4F$ "an;/ S"II
sta;e in up/ )ollowin( which price and turno5er reduced on %7 oct.
No5 %. !%9
I$I$I "an; hits o5erseas 2ond *ar;et a(ain/ *a+ raise at least =0!! *n . due to
news o) I$I$I 2an; raisin( )unds o5erseas there was hei(htened acti5it+
leadin( to price rise and turno5er.
AXIS
7E%
#eaderD A>is "an; (ets nod to raise F4I li*it to 1B
4ateD %E.E!%9
#eaderD R"I li)ts cur2s on FII purchase o) shares in A>is "an;
4ue to these reasons there was a increase in the price )ro* %,9.0 on 7E% to
%,,.10 on 9%E%
#eaderD #i(h pro5isions/ treasur+ losses *a+ tri* 2an; pro)its )or quarter ended
9! Sep thus led to a reduce in price )ro* %!,3 !n 3E%! to %!1, on 7E%!.
7E%
#eaderD A>is "an; (ets nod to raise F4I li*it to 1B
4ateD %E.E!%9
#eaderD R"I li)ts cur2s on FII purchase o) shares in A>is "an;
4ue to these reasons there was rise in turno5er )ro* %.07 on 7E% to
7311090 on 9!E%.
4ateD %%E%.E!%9
#eaderD A>is "an; to 2e <)orei(n8owned< a)ter hi;e in )orei(n in5est*ents
A)ter this news the turno5er started risin( )ro* %,E%%.
AXIS
KOTAK
Oct , !%9 -CMor(an cuts :ota; Mahindra/ S"I To <neutral< which led to a decline
in the price.
Oct 0 !%9 Sales rise %.,B to Rs %7.99 crore
No5 . !%9
Standard and CoorJs 6SFC& on Thursda+ assi(ned ratin(s o) K"""8J lon(8ter* and
KA89J short8ter* with a ne(ati5e outloo; on pri5ate lender :ota; Mahindra "an;.
Oct 3 !%9
:ota; Mahindra "an; H pro)it up %1B/ NIM rises to 3.,B Net interest *ar(in o)
the 2an; increased %! 2asis points sequentiall+ 69! 2asis points on +earl+ 2asis& to
3., percent durin( Septe*2er quarter.
Oct 0 !%9 Sales rise %.,B to Rs %7.99 crore
#ousin( sector
Banking sector
Oct 3 !%9
"an;s woes to continue/ NCAs at 3.3B 2+ Mar%0. Thus showin( a decline in
closin( price )or all 9 2an;s.
Oct %% !%9D
R"I rela>es )orei(n 2orrowin( nor*s )or 2an;s
No5 % !%9
Risin( 2ad de2ts ta;e a toll on 2an;s earnin(
No5 %% !%9
Risin( corporate 2ond +ields pose tou(h challen(e )or pri5ate 2an;s
Les "an;/ I$I$I "an;/ :ota; Mahindra/ A>is "an; set aside *ore *one+ in Sep
quarter to *a;e pro5isions
IN4I$ES
Oct %% !%9D
R"I rela>es )orei(n 2orrowin( nor*s )or 2an;s
No5 % !%9
Risin( 2ad de2ts ta;e a toll on 2an;s earnin(
No5 %% !%9
Risin( corporate 2ond +ields pose tou(h challen(e )or pri5ate 2an;s
Les "an;/ I$I$I "an;/ :ota; Mahindra/ A>is "an; set aside *ore *one+ in Sep
quarter to *a;e pro5isions
$onclusion
#4F$ has a consistent per)or*ance with less o) 5olatilit+. It is )inanciall+ *ore
sound than other co*panies and is e>pected to (i5e sta2le returns in )uture.