Bank Stocks Outlook for the week – 19 to 23.10.2015
Positive
next week; HDFC Bank Jul-Sep result eyed
Bank
Stocks are likely to trade with a positive bias tracking the broader market trend
following higher-than-expected Jul-Sep results of Reliance Industries, reported
post market hours yesterday. However, stock-specific action is seen taking the
forefront as more banks detail their Jul-Sep results. While earnings season has
started, next week is HDFC Bank. That will sort of give a big picture of the
overall trend in the sector, mainly in terms of loan growth. Apart from HDFC
Bank, others such as Federal Bank and State Bank of Bikaner and Jaipur will
also declare their Jul-Sep results.
South
Indian Bank will be in focus in Monday's trade as the lender is scheduled to
detail its earnings on Saturday. Further development at Bank of Baroda in the
wake of the alleged foreign exchange remittance fraud would be keenly tracked.
Earlier this week, the Central Bureau of Investigation arrested two Bank of
Baroda officials in relation to a 60-bln-rupee foreign remittance fraud at the
bank's Ashok Vihar branch in Delhi. According to reports, an HDFC Bank official
has also been arrested along with four other individuals in relation to the
case. Reports suggest that Enforcement Directorate had unearthed a foreign exchange
scam related to Axis Bank and Oriental Bank of Commerce.
However,
Oriental Bank yesterday clarified that it had reported a suspicious foreign
exchange transaction worth 5.5 bln rupees to the Financial Intelligence Unit -
India, and filed a complaint with the police. Amount was remitted to Hong Kong
to make import payments from the bank's Razapur Branch in Ghaziabad from 2006
to 2010, the bank informed exchanges.
