Indian Banks Deliver Strong Q2 Performance, Corporate India Shows Broad-Based Economic Strength: Parag Thakkar, Fort Capital
AI Summary1 min read
TL;DR
Indian banks excelled in Q2 with SBI boosting margins despite rate cuts, aided by liquidity and deposit strategies. The auto sector rallied on GST and RBI moves, while FMCG grew despite disruptions, showing broad economic strength.
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Indian banksQ2 performanceSBIauto sectorFMCG
Indian banks showed strong Q2 performance, with SBI leading the pack in improving net interest margins despite a 100-bps repo rate cut. Improved liquidity and better deposit repricing strategies supported this. The auto sector saw a sharp rally driven by GST cuts and RBI's 100-bps repo reduction, but valuations have become stretched. FMCG sector showed momentum, with Marico posting 7% volume growth despite GST-related disruptions. Corporate India overall is performing well, with broad-based economic strength.
