Equity Research

June 17, 2022 INDIA

BSE Sensex: 51496
ICICI Securities Limited
is the author and
distributor of this report
Sector update
Banking
Decoding banks’ deposit/lending rate action; gauging
immediate to medium term NIM trajectory
The Reserve Bank of India’s repo rate hike by 90bps (to 4.9%) within a month and
withdrawal of accommodative stance have raised questions with respect to
banks’ NIMs and earnings trajectory in immediate, near and medium terms. Here,
we decode the same gauging: i) banking sector (in general) and specific bank’s
(in particular) immediate reaction to repo rate hike, ii) their profile of loan portfolio
and deposits; and iii) chase for deposit (assessing CD ratio and growth profile).
Let’s jump to the conclusion first before you read on further for a comprehensive
rate action analysis.
 Banks’ reaction to repo rate hike: Rise in retail deposit rates lags the lending
(EBLR as well as MCLR) rate hike. HDFC Bank (HDFCB) and Kotak are more
aggressive with respect to MCLR hike (65bps in CY22), followed by SBI and Axis
(40bps), while Kotak (45-50bps) and IDFC FIRST Bank (75-100bps) are leading
retail deposit and savings rate hike. Bulk deposit rates across the board have
witnessed the sharpest spike of 100-170bps.
 Immediate term NIM impact (more relevant for Q1 and early part of Q2): In the
immediate term, solely based on lending and deposit rate action by various banks
so far (ceteris paribus other determinants namely growth, CD ratio, asset quality,
liquidity deployment etc), the impact on NIMs will be i) relatively more adverse for
Kotak, IndusInd (IIB), IDFC FIRST Bank (IDFCFB), RBL; ii) favourable for SBI and
Axis; iii) for HDFC Bank, IIB and RBL, given 45-50% of loan portfolio is fixed rate in
nature, rise in deposit rate (retail as well as bulk) will outweigh lending rate increase.
 Near to medium term NIM sensitivity to rate hike: Gradual 2-5% favourable
impact on NIMs, 5-15bps on RoA: Every 100bps increase in benchmark rates would
lead to 50-70bps repricing of yields. SBI, Kotak, Axis, Federal, CUBK will see
relatively more favourable yields compared to IIB, RBL and Bandhan. Similarly,
125bps rise in wholesale deposits and 100bps rise in retail term deposits would
have an impact of 30-40bps on cost of deposits. Given granular and robust CASA
franchise for SBI, HDFCB and Axis, the pressure on cost of deposits will be capped
at <30bps while it will be relatively high for IIB and RBL. Cumulatively, interest rate
movement of 100bps over 1-year horizon is likely to have a favourable impact of 2-
5% on NII and 5-15bps on RoA.

Chart 1: Banks 1-yr MCLR change in Chart 2: Retail TD rates have not seen
response to 90bps repo rate hike steep rise despite repo rate hike
1.10 1.10 1.00 0.90 1.00
0.90
0.75

0.90 0.90
0.65
0.65

0.80 0.80
0.45-0.5

0.70 0.70
0.45
0.40
0.40

0.50
0.30
0.30
0.30

0.50 0.50 0.60 0.60

Research Analysts:
0.25
0.23
(% )

(% )

0.35
(% )

(% )
0.2-0.25
0.10

0.30 0.30
0.40 0.40
Kunal Shah
0.20

0.10 0.10
-

kunal.shah@icicisecurities.com -0.10 -0.10 0.20 0.20

+91 22 6807 7572
-
-0.09

-0.30 -0.30
Renish Bhuva - -
SIB
DCB
IDFCFB

Bandhan
CUB
SBI

YES

KVB
RBL

Axis
IndusInd
HDFCB
Kotak

Federal

Bandhan

CUB
(<2 yrs)
IDFCFB
(1-2 yrs)

(1-3 yrs)

(2-3 yrs)
(1-5 yrs)

HDFCB
(1-2 yrs)

renish.bhuva@icicisecurities.com
Kotak
-0.25

Axis
SBI

+91 22 6807 7465

Chintan Shah Dec'21-Latest Repo rate hike (RHS)
chintan.shah@icicisecurities.com Dec'21-Latest Repo rate hike (RHS)
+91 22 6807 7658 Source: Company data, I-Sec research. Source: Company data, I-Sec research.
Please refer to important disclosures at the end of this report
Banking, June 17, 2022 ICICI Securities
How are banks immediately reacting to repo rate hike?
 MCLR hiked by 25-65bps; HDFCB and Kotak being more aggressive followed
by SBI and Axis: Leading banks have raised MCLR by 25-65bps since Jan’22.
HDFCB and Kotak have taken the lead with 65bps hike (to 7.85%) followed by SBI
and Axis by 40bps (to 7.4% and 7.75%, respectively), IIB and YES by 30bps,
IDFCFB by 25bps each and RBL by 45bps. EBLR rate (particularly repo linked) for
home loans has witnessed similar rise as repo rate with leading banks’ home loan
rates now being revised to 7.5-7.6% (compared to 6.6-6.7%) prior to rate hike
cycle.
 Retail term deposit rates have risen across the board but not commensurate
with repo hike: Since Jan’22, SBI has raised retail term deposits in <2 years
bucket by 20bps, 2-3 years by 25bps and >3 years by 10-15bps. Similarly, HDFC
Bank and Axis have raised in <2 years bucket by 35bps and 15bps respectively, in
>2 years bucket by 20-25bps. Kotak has been at the forefront, hiking TD rates by
45-50bps across 1-5 years bucket. IDFC FIRST Bank, too, has increased retail TD
in <1 year bucket by 100bps and in 1-2 years bucket by 75bps. Bandhan has
increased TD rates by 50bps in 1-2 years bucket.
 Wholesale term deposit rates have witnessed the sharpest spike: Bulk deposit
rates have witnessed the sharpest spike of 100-170bps in one-year bucket. In less
than a year bucket, differential between retail and bulk deposit rates is entirely
bridged compared to >100bps variance earlier. In fact in 3-6 months bucket, bulk
deposit rates are at 80-125bps premium to retail deposit rates compared to similar
rates being offered earlier till Dec’21.
 Savings rate hiked only by Kotak, IDFCFB and Federal: The median savings
deposit rate declined during the rate cut cycle by 60bps from 3.5% in Jan’19 to
2.9% in Mar’22. Hence, it will be raised as well with a lag in rising interest rate
scenario. Kotak has taken a lead by increasing savings rate by 50bps to 4% for
>Rs5mn deposit balance. Federal Bank, too, has raised savings rate for balance
above Rs50mn to 4%. IDFC FIRST Bank has been an early mover, raised savings
rate in May itself by 100bps to 6% for savings balance of Rs1-5mn and for Rs10-
50mn.
 Bond market borrowing up >80bps since Mar’22: G-sec yields surged 75bps
since Mar’22 to 7.6% and corporate bond yields by >80bps. AAA corporate bond
spreads over G-sec have remained stable at ~40bps with BBB- corporate spreads
around 4.5%.
What does deposit rate hike mean for cost of deposit trajectory evaluating
banks’ deposit profile?
 For leading private banks, ~20% of deposits are bulk in nature for HDFCB, Axis,
IIB, 23% for Bandhan, 15-16% for IDFCF, and 10-12% for SBI and Kotak.
 Retail term deposits constitute 30-40% of deposits for most of them.
 Proportion of current account deposits (not impacted by rate hike) is amongst the
highest for Kotak at >20%, followed by 18% for IDFCFB, 15% for HDFCB, Axis,
RBL, 12% for IIB and 6% for SBI.

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Banking, June 17, 2022 ICICI Securities
 Savings deposit constitute 40% for Kotak and 30-32% for IDFCFB and Federal and
will be impacted by the rate hike effected by them. Other banks have not yet
tweaked their savings deposit rate.
How is bank credit portfolio positioned for effective rate transmission?
 Proportion of EBR-linked loans (of the floating rate loans) for private bank is as
high as 57% as of Dec’21 (compared 43% / 17.5% in Mar’21 / Mar’20) while that
for PSU banks was at 28% in Dec’21 (vs 20.3% / 4.8% in Mar’21 / Mar’20). More
than 60% of PSU banks’ floating rate loans are still linked to MCLR.
 Amongst banks, 50% of overall loan portfolio of Kotak is linked to EBLR, followed
by HDFCB and Axis at 39%, and SBI at 34%.
 SBI and IndusInd have relatively higher proportion of loans linked to MCLR at 41%
and 47%, respectively.
 Proportion of loans of fixed rate nature is ~45% for IIB and HDFCB and 30-32% for
Axis and Kotak.

Assessing CD ratio and growth profile to gauge banks’ chase for deposit
 CD ratio for Kotak and Bandhan has expanded >600bps in H2FY22. Also, for
HDFCB CD ratio expanded by >250bps, and preparing for merger, it will look to
mobilise deposits at a faster pace. Relative to this, CD ratio for SBI and Axis is
comfortable compared to their historical average and credit growth is mirroring the
deposit growth run-rate.
 Deposit share assessment places HDFC Bank and SBI favourably; IIB, RBL, YES,
IDFCFB scaling, strengthening and stabilising franchise: Incremental deposit share
assessment suggests HDFCB (13-15% incremental growth share in the past 8-12
quarters vs 6.7% share in outstanding deposits in FY18) and SBI (27% versus
23%) are consolidating their leadership positions on the deposit front as well.
Kotak, having invested and built scale, has moderated growth to incremental share
of mere 1.4% (from outstanding share of 1.6%).
 Focus on scaling up, strengthening or stabilising liability franchise for IIB, YES,
IDFCFB, is reflected in more than double incremental share over the past few
quarters to outstanding as of FY18.

NIM drag due to CRR hike to be limited due to excess liquidity

 Post CRR hike of 50bps in May (that would have sucked systemic liquidity to the
extent of Rs870bn), systemic liquidity has moderated. There was no further hike in
CRR in June. Most banks are already sitting on excess liquidity and margin drag to
that extent will be limited.

The way forward - further increase in deposit and lending rates

 Banks have also raised deposit rates across maturity buckets with peak retail TD
rates being at 5.75-5.9%. With further repo rate hike in the offing, rates will be
further revised upwards in coming months in our view.

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 Banking, June 17, 2022 ICICI Securities

How are banks immediately reacting to repo rate hike?

Table 1: HDFC Bank and Kotak Bank have been more aggressive with respect to MCLR hike
Mar'22- Dec'21-
(%) Mar- Mar- Mar- Mar- Mar- Dec- Jan- Feb- Mar- Apr- May- Jun'22 Jun'22
2017 2018 2019 2020 2021 2021 2022 2022 2022 2022 2022 Latest MTD MTD
HDFCB 8.15 8.30 8.75 8.15 7.20 7.20 7.20 7.20 7.25 7.25 7.50 7.85 0.60 0.65
Kotak 8.85 8.65 9.00 8.35 7.25 7.20 7.25 7.30 7.35 7.40 7.65 7.85 0.50 0.65
RBL 9.75 9.45 10.25 9.45 8.65 8.25 8.35 8.45 8.55 8.60 8.70 8.70 0.15 0.45
SBI 8.00 8.15 8.55 7.75 7.00 7.00 7.00 7.00 7.00 7.10 7.20 7.40 0.40 0.40
Axis 8.25 8.40 8.90 8.10 7.40 7.35 7.35 7.35 7.35 7.40 7.75 7.75 0.40 0.40
DCB 9.98 9.87 10.84 10.22 9.43 8.93 8.91 8.91 9.08 9.21 9.23 9.23 0.15 0.30
IndusInd 9.10 9.25 9.90 9.25 8.60 8.45 8.45 8.45 8.50 8.55 8.75 8.75 0.25 0.30
YES 8.80 9.25 9.70 9.70 8.45 8.45 8.45 8.50 8.50 8.50 8.60 8.75 0.25 0.30
IDFC FB 8.75 8.75 9.25 9.35 8.40 8.40 8.35 8.35 8.35 8.35 8.40 8.65 0.30 0.25
KVB 9.60 9.16 9.65 9.40 8.63 8.12 8.08 8.22 8.37 8.33 8.35 8.35 -0.02 0.23
Bandhan 10.52 9.91 10.45 9.95 9.25 9.25 9.05 9.15 9.25 8.85 9.16 9.16 -0.09 -0.09
CUB 9.50 9.05 9.30 9.00 8.25 7.75 7.50 7.50 7.50 7.50 7.50 7.50 0.00 -0.25
Source: Company, I-Sec Research

Chart 3: Banks 1-yr MCLR change in response to 90bps repo rate hike
1.10 1.10
0.90
0.90 0.90
0.65 0.65
0.70 0.70
0.45
0.50 0.40 0.40 0.50
(%)

(%)
0.30 0.30 0.30
0.25 0.23
0.30 0.30
0.10
0.10 - 0.10

-0.10 -0.10
-0.09
-0.30 -0.30
HDFCB

Bandhan
RBL

Axis

Federal
Kotak

IndusInd

SIB
YES

KVB
SBI

DCB

IDFC FB

CUB
-0.25

Dec'21-Latest Repo rate hike (RHS)

Source: RBI, Company, I-Sec Research

Chart 4: EBLR rate (particularly repo linked) for home loans has witnessed
similar rise as repo rate for leading banks’ home loan rates
31-Mar-2022 08-Jun-2022 15-Jun-2022
7.80

7.60
7.6 7.6
7.40 7.5

7.20

7.00
7.1 7.1
7.0
(%)

6.80

6.60
6.7 6.7
6.6
6.40

6.20

6.00
SBIN HDFC Kotak Mahindra Bank
Source: Company, I-Sec Research

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 Banking, June 17, 2022 ICICI Securities
Chart 5: Retail TD rates have not witnessed steep rise despite repo rate hike
1.00 0.90 1.00
0.90 0.90
0.80 0.75 0.80
0.70 0.70
0.60 0.50 0.45-0.5 0.60

(%)

(%)
0.50 0.50
0.40 0.35 0.40
0.30 0.2-0.25 0.20 0.30
0.20 0.20
0.10 - 0.10
- -
IDFC FB Bandhan Kotak (1-5 HDFCB SBI (1-3 Axis (2-3 CUB
(1-2 yrs) (1-2 yrs) yrs) (less than yrs) yrs)
2 yrs)

Dec'21-Latest Repo rate hike (RHS)

Source: Company, I-Sec Research

Chart 6: Savings rate hiked only by Kotak, IDFCFB and Federal

SA rate change since Mar'22
120

100
100

80
(bps)

60

50
40

20 25

-
IDFC FB (Rs 1mn-10mn) Kotak (upto Rs5mn) Federal (Below Rs50mn)
Source: Company, I-Sec Research

Table 2: Savings deposit rate offered by various banks

IDFC Karur
Slab (%) Axis Bandhan CUBK DCB Federal HDFCB FIRST Vysya Kotak RBL SBI Yes
Less than Rs100k 3.00 3.00 3.00 2.50 2.75 3.00 4.00 2.25 3.50 4.25 2.70 4.00
Rs100k-200k 3.00 5.00 3.50 4.00 2.75 3.00 4.00 2.25 3.50 5.50 2.70 4.25
Rs200k-500k 3.00 5.00 3.50 5.00 2.75 3.00 4.00 2.25 3.50 5.50 2.70 4.25
Rs500k-1mn 3.00 5.00 3.50 6.00 2.75 3.00 4.00 2.50 3.50 5.50 2.70 4.25
Rs1mn-2.5mn 3.00 6.00 4.00 6.75 2.75 3.00 6.00 3.00 3.50 6.00 2.70 4.75
Rs2.5mn-5mn 3.00 6.00 4.00 6.75 2.75 3.00 6.00 3.00 3.50 6.00 2.70 4.75
Rs5mn-10mn 3.50 6.00 4.00 5.50 2.75 3.50 6.00 3.00 4.00 6.00 2.70 4.75
Rs10mn-20mn 3.50 6.00 4.00 5.50 2.75 3.50 6.00 3.25 4.00 6.00 2.70 5.00
Rs20mn-30mn 3.50 5.00 4.00 5.50 2.75 3.50 6.00 3.25 4.00 6.00 2.70 5.00
Rs30mn-50mn 3.50 5.00 4.00 5.50 2.75 3.50 6.00 3.25 4.00 6.00 2.70 5.00
Rs50mn-100mn 3.50 5.00 4.00 5.50 4.00 3.50 6.00 3.25 4.00 5.75 2.70 5.00
May- Nov- Nov- May- Jun- Apr- Jun- Jul- Jun- Apr- May- Feb-
Update Date
2022 2021 2021 2022 2022 2022 2022 2021 2022 2022 2020 2022
Source: Company, I-Sec Research

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 Banking, June 17, 2022 ICICI Securities
Table 3: Retail TD rates across maturity buckets
(%) Axis Bandhan CUBK DCB Federal HDFCB IDFC IndusInd KVB Kotak RBL SBI YES
7 days to 14 days 2.50 3.00 3.00 4.80 2.65 2.50 3.50 2.75 3.25 2.50 3.25 2.90 3.25
15 days to 29 days 2.50 3.00 3.00 4.80 2.65 2.50 3.50 3.00 3.25 2.50 3.75 2.90 3.50
30 days to 45 days 3.00 3.50 3.00 4.80 3.25 3.00 4.00 3.50 3.25 3.00 3.75 2.90 3.50
46 days to 2 months 3.00 3.50 3.25 4.80 3.65 3.00 4.00 3.65 3.50 3.00 4.00 3.90 4.00
2 months < 3 months 3.00 3.50 3.25 4.80 3.75 3.00 4.00 3.75 3.50 3.00 4.00 3.90 4.00
3 months < 4 months 3.50 3.50 3.50 5.50 4.00 3.50 4.50 4.00 3.75 3.50 4.50 3.90 4.50
4 months < 6 months 3.50 3.50 3.50 5.50 4.25 3.50 4.50 4.50 4.00 3.50 4.50 3.90 4.50
6 months < 7 months 4.40 4.50 3.75 5.70 4.50 4.50 5.75 4.75 4.50 4.75 5.00 4.40 4.75
7 months < 9 months 4.40 4.50 3.75 5.70 4.50 4.50 5.75 5.00 4.50 4.75 5.00 4.60 4.75
9 months < 12 months 4.75 4.50 4.75 5.70 4.75 4.50 5.75 5.50 4.50 4.75 5.25 4.60 5.00
1 year 5.25 5.75 5.00 6.00 5.40 5.10 6.00 6.00 5.40 5.50 6.25 5.30 5.75
12 months < 15 months 5.25 5.75 5.00 5.75 5.40 5.10 6.00 6.00 5.40 5.65 6.25 5.30 6.00
15 months < 24 months 5.30 5.75 5.25 6.50 5.40 5.10 6.00 6.00 5.40 5.65 6.25 5.30 6.00
24 months < 36 months 5.60 6.25 5.00 6.50 5.75 5.40 6.00 6.50 5.50 5.75 6.50 5.35 6.25
36 months < 60 months 5.60 6.25 5.00 6.60 5.75 5.60 6.25 6.50 5.65 5.90 6.30 5.45 6.25
> 60 months 5.75 5.60 5.00 6.60 5.75 5.75 6.00 6.00 5.80 5.90 5.75 5.50 6.25
Jun- May- Aug- May- May- May- May- Jun- Feb- Jun- Jun- Jun- Jun-
Date of Update
2022 2022 2021 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022

Peak rate 5.75 6.25 5.25 6.60 5.75 5.75 6.25 6.50 5.80 5.90 6.50 5.50 6.25
Peak rate (upto 3 yrs) 5.60 6.25 5.25 6.50 5.75 5.40 6.00 6.50 5.50 5.75 6.50 5.35 6.25
Peak rate (above 3 yrs) 5.75 6.25 5.00 6.60 5.75 5.75 6.25 6.50 5.80 5.90 6.30 5.50 6.25

Peak rate (1 to 2 years) 5.30 5.75 5.25 6.50 5.40 5.10 6.00 6.00 5.40 5.65 6.25 5.30 6.00
Source: Company, I-Sec Research

Table 4: Latest wholesale TD (>Rs20mn) rates across banks

(%) Axis Bandhan CUBK DCB HDFCB IDFC First IndusInd Kotak SBI
7 days to 14 days 3.10 3.25 3.00 3.00 3.10 3.90 2.75 3.00 3.50
15 days to 29 days 3.25 3.25 3.00 3.25 3.10 3.90 3.00 3.00 3.50
30 days to 45 days 3.50 3.75 3.00 3.50 3.25 3.95 3.50 3.25 3.50
46 days to 2 months 3.50 3.75 3.00 3.75 3.50 4.10 3.60 3.25 4.00
2 months < 3 months 3.70 3.75 3.00 3.80 3.75 4.85 4.00 3.50 4.00
3 months < 4 months 4.30 3.75 3.00 5.00 4.75 5.10 4.10 4.00 4.00
4 months < 6 months 4.30 3.75 3.00 5.00 4.75 5.10 4.50 4.25 4.00
6 months < 9 months 4.55 4.00 3.00 5.25 5.00 5.50 5.10 4.75 4.50
9 months < 12 months 4.75 4.00 3.00 5.50 5.10 6.00 5.25 4.75 4.50
1 year 5.15 5.75 5.25 5.90 5.25 6.00 5.50 5.50 4.75
12 months < 15 months 5.15 5.25 3.25 5.65 5.25 6.25 5.60 5.50 4.75
15 months < 24 months 5.15 5.25 3.30 6.25 5.25 6.25 5.60 5.50 4.75
24 months < 36 months 5.25 5.25 3.00 5.90 5.40 6.25 5.75 5.60 4.25
36 months < 60 months 5.25 5.00 2.50 5.90 5.50 6.50 5.75 5.75 4.50
> 60 months 5.25 5.00 2.00 5.90 5.50 6.50 5.50 5.75 4.50
Date of Update Jun-2022 May-2022 Aug-2021 Jun-2022 Jun-2022 Jun-2022 Jun-2022 Jun-2022 Jun-2022

Peak rate 5.25 5.75 5.25 6.25 5.50 6.50 5.75 5.75 4.75
Peak rate (upto 3 yrs) 5.25 5.75 5.25 6.25 5.40 6.25 5.75 5.60 4.75
Peak rate (above 3 yrs) 5.25 5.00 2.50 5.90 5.50 6.50 5.75 5.75 4.50
Source: Company, I-Sec Research

6
 Banking, June 17, 2022 ICICI Securities
Table 5: SBI – Bulk (>Rs20mn) vs. Retail TD (<Rs20mn) differential from Dec’21 to Jun’22
SBIN Latest Mar'22 Dec'21
Tenure (%) Retail Bulk Diff. Retail Bulk Diff. Retail Bulk Diff.
30 days to 45 days 2.90 3.50 0.60 2.90 3.00 0.10 2.90 3.00 0.10
46 days to 2 months 3.90 4.00 0.10 3.90 3.00 -0.90 3.90 3.00 -0.90
2 months < 3 months 3.90 4.00 0.10 3.90 3.00 -0.90 3.90 3.00 -0.90
3 months < 6 months 3.90 4.00 0.10 3.90 3.00 -0.90 3.90 3.00 -0.90
6 months < 9 months 4.40 4.50 0.10 4.40 3.10 -1.30 4.40 3.10 -1.30
9 months < 12 months 4.60 4.50 -0.10 4.40 3.30 -1.10 4.40 3.10 -1.30
1 year 5.30 4.75 -0.55 5.10 3.60 -1.50 5.00 3.10 -1.90
12 months < 15 months 5.30 4.75 -0.55 5.10 3.60 -1.50 5.00 3.10 -1.90
15 months <24 months 5.30 4.75 -0.55 5.10 3.60 -1.50 5.00 3.10 -1.90
24 months < 36 months 5.35 4.25 -1.10 5.20 3.60 -1.60 5.10 3.10 -2.00
36 months < 60 months 5.45 4.50 -0.95 5.45 3.60 -1.85 5.30 3.10 -2.20
> 60 months 5.50 4.50 -1.00 5.50 3.60 -1.90 5.40 3.10 -2.30

Peak rate 5.50 4.75 -0.75 5.50 3.60 -1.90 5.40 3.10 -2.30
Peak rate (upto 3 yrs) 5.35 4.75 -0.60 5.20 3.60 -1.60 5.10 3.10 -2.00
Source: Company, I-Sec Research

Table 6: HDFCB – Bulk (>Rs20mn) vs. Retail TD (<Rs20mn) differential from Dec’21 to Jun’22
HDFCB Latest Mar'22 Dec'21
Tenure (%) Retail Bulk Diff. Retail Bulk Diff. Retail Bulk Diff.
30 days to 45 days 3.00 3.25 0.25 3.00 2.75 -0.25 3.00 2.75 -0.25
46 days to 2 months 3.00 3.50 0.50 3.00 2.75 -0.25 3.00 2.75 -0.25
2 months < 3 months 3.00 3.75 0.75 3.00 3.00 - 3.00 3.00 -
3 months < 6 months 3.50 4.75 1.25 3.50 3.35 -0.15 3.50 3.25 -0.25
6 months < 9 months 4.50 5.00 0.50 4.40 3.60 -0.80 4.40 3.50 -0.90
9 months < 12 months 4.50 5.10 0.60 4.40 3.70 -0.70 4.40 3.65 -0.75
1 year 5.10 5.25 0.15 5.00 4.05 -0.95 4.90 4.00 -0.90
12 months < 15 months 5.10 5.25 0.15 5.00 4.05 -0.95 5.00 4.00 -1.00
15 months <24 months 5.10 5.25 0.15 5.00 4.10 -0.90 5.00 4.00 -1.00
24 months < 36 months 5.40 5.40 - 5.20 4.50 -0.70 5.15 4.50 -0.65
36 months < 60 months 5.60 5.50 -0.10 5.45 4.60 -0.85 5.35 4.60 -0.75
> 60 months 5.75 5.50 -0.25 5.60 4.60 -1.00 5.50 4.60 -0.90

Peak rate 5.75 5.50 -0.25 5.60 4.60 -1.00 5.50 4.60 -0.90
Peak rate (upto 3 yrs) 5.40 5.40 - 5.20 4.50 -0.70 5.15 4.50 -0.65
Source: Company, I-Sec Research

Table 7: Axis – Bulk (>Rs20mn) vs. Retail TD (<Rs20mn) differential from Dec’21 to Jun’22
AXIS Latest Mar'22 Dec'21
Tenure (%) Retail Bulk Diff. Retail Bulk Diff. Retail Bulk Diff.
30 days to 45 days 3.00 3.50 0.50 3.00 3.20 0.20 3.00 3.00 -
46 days to 2 months 3.00 3.50 0.50 3.00 3.20 0.20 3.00 3.00 -
2 months < 3 months 3.00 3.70 0.70 3.00 3.35 0.35 3.00 3.25 0.25
3 months < 4 months 3.50 4.30 0.80 3.50 4.00 0.50 3.50 3.45 -0.05
6 months < 7 months 4.40 4.55 0.15 4.40 4.25 -0.15 4.40 3.85 -0.55
9 months < 10 months 4.75 4.75 - 4.40 4.30 -0.10 4.40 4.00 -0.40
1 year 5.25 5.15 -0.10 5.10 4.45 -0.65 5.10 4.15 -0.95
12 months < 13 months 5.25 5.15 -0.10 5.15 4.45 -0.70 5.10 4.15 -0.95
15 months < 16 months 5.30 5.15 -0.15 5.20 4.45 -0.75 5.10 4.15 -0.95
24 months < 30 months 5.60 5.25 -0.35 5.40 4.55 -0.85 5.40 4.45 -0.95
36 months < 60 months 5.60 5.25 -0.35 5.40 4.65 -0.75 5.40 4.45 -0.95
> 60 months 5.75 5.25 -0.50 5.75 4.65 -1.10 5.75 4.45 -1.30

Peak rate 5.75 5.25 -0.50 5.75 4.65 -1.10 5.75 4.45 -1.30
Peak rate (upto 3 yrs) 5.60 5.25 -0.35 5.40 4.55 -0.85 5.40 4.45 -0.95
Source: Company, I-Sec Research

7
Banking, June 17, 2022 ICICI Securities

What does deposit rate hike mean for cost of deposit trajectory
evaluating banks’ deposit profile?
Chart 7: Retail term deposits constitute 30-40% of deposits
CA SA RTD WTD
100%
12% 11% 8% 10%
90% 19% 20% 21% 16% 23%
28%
80% 38%
28%
70% 43% 33% 36% 53%
60% 35% 36% 36% 57%
50% 38%
30%
40% 40%
30% 33% 30% 30%
39% 30% 20% 36% 18% 32% 23%
20%
10% 15% 15% 21% 15% 18%
7% 12% 13% 7% 10%
0% 6%

CUBK
HDFCB

Bandhan
RBL
Axis

Federal
Kotak
SBI

Yes Bank
FIRST
Indusind

IDFC
Source: Company, I-Sec Research

How is bank credit portfolio positioned for effective rate

transmission?
Chart 8: Banks with higher exposure to home loans, MSMEs have higher
exposure to EBR-linked loans
Fixed MCLR EBLR Other

20%0%
100%
9%

15%

16% 20%
90% 18%
28%

27%
25%

25%

0%
28%
39%

80%
34%

39%

50%

70%
47%

36%
70%
17%
25%

60%
33%

46%
15%

38%

50%
23%

85%

80%
18%

58%
40%
41%

24%

62%
30%
55%

CUBK 20% 10%

47%
46%

44%

40%

20%
33%
33%
32%

30%

25%
SBI 17%

10%
KVB 10%

0%
FB
HDFCB

Suryoday
Bandhan
Axis

RBL
Kotak

Ujjivan
Equitas
FIRST
Indusind

DCB
Yes Bank
IDFC

SFB
SFB

SFB
Source: I-Sec Research

8
Banking, June 17, 2022 ICICI Securities
Assessing CD ratio and growth profile to gauge banks’ chase
for deposit

Table 8: CD ratio for Kotak and Bandhan has expanded >600bps in H2FY22
CD ratio (%) Q4FY17 Q4FY18 Q4FY19 Q4FY20 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22
HDFC 86 83 89 87 85 85 85 87 88
AXIS 90 97 90 89 88 86 84 86 86
KOTAK 86 88 91 84 80 76 81 84 87
INDUSIND 89 102 100 102 83 79 80 80 81
BANDHAN 132 117 105 97 91 95 98
SBIN 72 71 75 72 67 65 64 67 67
RBL 85 92 93 100 80 76 74 79 76
YES 93 101 106 163 102 100 98 96 92
IDFCFB 123 108 122 131 126 119 113 116 112
KVB 76 79 81 78 80 78 79 80 81
FB 75 82 82 80 76 77 78 80 80
CUBK 79 85 85 83 81 82 80 82 85
DCB 82 85 83 83 87 83 85 86 84
Equitas 138 129 127 103 98 99 102 102
Ujjivan 199 145 130 110 97 96 99 89
Suryoday 124 122 114 134 146 123
Source: Company, I-Sec Research

Table 9: HDFCB, Kotak and Bandhan leading the credit growth

(%) Q4FY18 Q4FY19 Q4FY20 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22
HDFC 19 24 21 14 14 15 16 21
AXIS 18 13 15 9 10 10 12 13
KOTAK 25 21 7 2 7 15 16 21
INDUSIND 37 26 7 3 7 10 10 12
BANDHAN 17 22 7 2 5 15
SBIN 4 13 6 5 6 7 9 12
RBL 37 35 7 1 -0 -0 3 2
YES 54 19 -29 -3 -1 4 4 8
IDFCFB 6 65 -1 31 11 14 0 5
KVB 10 8 -5 9 8 7 8 10
FB 25 20 11 8 7 9 12 10
CUBK 17 17 4 7 5 7 7 12
DCB 29 16 8 2 2 8 9 12
Equitas 50 19 23 16 12 9 15
Ujjivan 28 40 33 3 -7 -2 14 12
Suryoday 13 10 18 22 19
Source: Company, I-Sec Research

Table 10: Deposit growth across board in the average of 15-20%

(%) Q4FY18 Q4FY19 Q4FY20 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22
HDFC 23 17 24 16 13 14 14 17
AXIS 9 21 17 10 14 18 16 16
KOTAK 22 17 16 7 10 12 12 11
INDUSIND 20 29 4 27 26 21 19 15
BANDHAN 32 37 28 24 19 24
SBIN 4 8 11 14 9 10 9 10
RBL 27 33 -1 26 21 17 10 8
YES 41 13 -54 55 39 30 26 21
IDFCFB 20 46 -8 36 31 19 9 19
KVB 6 5 -1 7 7 7 8 9
FB 15 21 13 13 9 10 9 5
CUBK 9 17 6 9 9 12 8 7
DCB 24 18 7 -2 4 10 12 17
Equitas 61 20 52 45 40 13 16
Ujjivan 91 49 22 24 31 34 39
Suryoday 14 16 -0 -5 18
Source: Company, I-Sec Research

9
Banking, June 17, 2022 ICICI Securities
Table 11: Deposit share assessment places HDFC Bank and SBI favourably
Market share Incremental Growth Mkt share
FY16 FY18 FY20 FY21 FY22 FY15-18 FY18-22 FY21 FY22
ALL SCBs 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
PVT banks 21.3% 25.6% 29.8% 30.8% 32.0% 50.0% 46.1% 39.7% 43.8%
PSU banks 52.0% 47.1% 41.6% 39.9% 38.2% 17.0% 18.7% 25.5% 21.5%
SBI 22.2% 22.9% 23.2% 23.6% 23.6% 28.2% 25.0% 27.2% 23.3%
SFBs 0.2% 0.4% 0.6% 0.7% 0.9% 2.4% 1.7% 2.6%

Axis 3.5% 3.8% 4.6% 4.5% 4.8% 5.6% 6.8% 4.2% 7.2%
Bandhan 0.1% 0.3% 0.4% 0.5% 0.6% 1.2% 1.3% 1.2%
CUBK 0.3% 0.3% 0.3% 0.3% 0.3% 0.4% 0.3% 0.2% 0.2%
DCB 0.1% 0.2% 0.2% 0.2% 0.2% 0.2% 0.0% 0.3%
Federal 0.8% 0.9% 1.1% 1.1% 1.1% 1.7% 1.3% 1.3% 0.6%
HDFCB 5.4% 6.7% 8.2% 8.6% 9.1% 14.3% 14.3% 11.6% 14.1%
IDFC FB 0.1% 0.4% 0.5% 0.6% 0.6% 1.1% 1.5% 1.1%
IndusInd 0.9% 1.3% 1.4% 1.6% 1.7% 3.3% 2.6% 3.4% 2.3%
Kotak 1.4% 1.6% 1.9% 1.8% 1.8% 5.0% 2.2% 1.1% 2.0%
RBL 0.2% 0.4% 0.4% 0.5% 0.5% 1.9% 0.7% 0.9% 0.4%
SBI 23.3% 22.9% 23.2% 23.6% 23.6% 28.2% 25.0% 27.2% 23.3%
YES 1.1% 1.7% 0.8% 1.0% 1.1% 4.6% -0.1% 3.6% 2.2%

Equitas SFB 0.0% 0.1% 0.1% 0.1% 0.2% 0.3% 0.2%

Ujjivan SFB 0.0% 0.1% 0.1% 0.1% 0.3% 0.1% 0.3%
Source: RBI, Company, I-Sec Research

10
Banking, June 17, 2022 ICICI Securities
Near to medium term NIM sensitivity to rate hike

Table 12: 100bps rise in rates to have 2-6% impact on NIMs, 5-15bps on RoA
100bps impact as per Basel Earnings impact (Rs mn) Net impact (% of NII) Net impact (% of assets)
III disclosures Mar'21 Sep’21/Mar’22 Mar'21 Sep’21/Mar’22 Mar'21 Sep’21/Mar’22
SBI 59,963 72,891 4.93% 6.00% 0.12% 0.15%
HDFCB 32,722 32,518 4.54% 4.52% 0.16% 0.16%
Axis 12,815 19,251 3.87% 5.81% 0.11% 0.16%
Kotak 3,635 10,141 2.16% 6.03% 0.08% 0.24%
Indusind -135 1,117 -0.09% 0.74% 0.00% 0.03%
RBL 721 1,200 1.79% 2.99% 0.07% 0.12%
IDFC FIRST 610 800 0.63% 0.82% 0.03% 0.04%
Bandhan 1,435 1,184 1.68% 1.39% 0.11% 0.09%
Yes Bank 3,669 4,081 5.65% 6.28% 0.12% 0.13%
Federal 490 1,028 0.82% 1.73% 0.02% 0.05%
CUBK 725 3.66% 0.13%
DCB 642 695 4.71% 5.10% 0.15% 0.16%
KVB 429 535 1.63% 2.04% 0.05% 0.07%
Equitas SFB 39 0.19% 0.01%
Ujjivan SFB 663 3.89% 0.29%
Suryoday SFB 82 1.30% 0.10%
Source: Company, I-Sec Research

Chart 9: Our assessment of advance as well as deposit repricing sensitivity for

every 100bps rise in benchmark rates

Source: I-Sec Research

Table 13: Share of EBR-linked loans rising for the system

(% to total) Mar-2020 Mar-2021 Jun-2021 Dec-2021
Base rate regime 10.2 6.4 6.5 5.3
MCLR regime 77.7 62.8 60.3 53.1
External benchmark regime 9.3 28.6 32.2 39.2
Others 1.7 1.5 0.5 1.9
Source: RBI, I-Sec research

11
Banking, June 17, 2022 ICICI Securities

Long term rate trend and financial sector market performance

Chart 10: Deposit rate cycle bottoming out (SBI peak TD rates)

10.00 SBI - Peak rate (upto 3 yrs)

9.50
9.00
8.50
8.00
(%)
7.50
7.00
6.50
6.00
5.50
5.00
May-09

May-11

May-19
Jan-08

Jan-09

Jan-20
Mar-20
Feb-14

Feb-18

Feb-22
Jul-09

Jul-15

Jul-17

Jul-18
Oct-14

Apr-16
Apr-12

Apr-15
Sep-12

Sep-19

Sep-20
Aug-08

Dec-10
Nov-09

Nov-16
Source: Company, I-Sec Research

Chart 11: Financial sector PE corrected to its long term average

Financials TTM PE 20Y average
35.00

30.00

25.00

20.00
(%)

15.00

10.00

5.00

-
May-04

May-18
Jan-02

Jun-08

May-11

Jan-16

Jun-22
Jan-09

Jun-15
Mar-03

Mar-10
Feb-06

Feb-20
Feb-13

Mar-17
Oct-03

Apr-07

Apr-14

Oct-17
Oct-10

Apr-21
Jul-05

Jul-12

Jul-19
Nov-07

Dec-11

Dec-18

Nov-21
Dec-04

Nov-14
Aug-09

Sep-13

Aug-16

Sep-20
Aug-02

Sep-06

Source: Bloomberg, I-Sec Research

Chart 12: Trend in NIFTY PE vis-à-vis SBI 1-2 years TD rate

NIFTY rolling 1Y-fwd PE SBI TD rate for 1 to 2Y (RHS)
30.0 10.50

9.50
25.0

8.50
20.0
7.50
(%)
(x)

15.0
6.50

10.0
5.50

5.0 4.50
May-18

May-20
Jan-08

Jan-19

Jun-22
Jun-09

Mar-14

Feb-21
Feb-10

Mar-12

Jul-13
Jul-11

Apr-16

Oct-21
Oct-08

Oct-10

Dec-14
Aug-15

Dec-16
Aug-17

Sep-19
Nov-12

Source: Bloomberg, Company, I-Sec Research

12
 Banking, June 17, 2022 ICICI Securities
Chart 13: Trend of Financial sector PE vis-à-vis SBI 1-2 years TD rate
Financials TTM PE SBI TD rate for 1 to 2Y (RHS)
30.0 10.50

9.50
25.0

8.50
20.0
7.50

(%)
(x)
15.0
6.50

10.0
5.50

5.0 4.50

May-20
May-18
Jan-08

Jun-22
Jun-09

Mar-12

Jan-19
Feb-10

Feb-21
Mar-14
Jul-11
Oct-10

Jul-13

Apr-16

Oct-21
Oct-08

Nov-12

Aug-15

Dec-16
Aug-17
Dec-14

Sep-19
Source: Bloomberg, Company, I-Sec Research

Table 14: G-sec yields surged 75bps since Mar’22 to 7.6% and corporate bond yields by >80bps (%)
AAA 10 year AAA 10 year AAA 10 year
Start End 10Y g-sec AAA AA- A- BBB-
Corp Bank NBFC
16-Mar-2013 31-Mar-2013 7.95 8.91 9.96 10.86 12.21 8.98 8.77 9.08
16-Mar-2014 31-Mar-2014 8.80 9.68 10.23 11.13 12.48 9.70 9.58 9.80
16-Mar-2015 31-Mar-2015 7.77 8.39 9.77 10.63 11.20 8.42 8.29 8.54
16-Mar-2016 31-Mar-2016 7.51 8.54 9.20 10.76 11.51 8.57 8.44 8.71
16-Mar-2017 31-Mar-2017 6.79 8.02 8.75 10.57 11.38 8.24 7.88 8.07
16-Mar-2018 31-Mar-2018 7.51 8.29 8.82 10.57 11.88 8.30 8.26 8.35
16-Mar-2019 31-Mar-2019 7.34 8.51 9.10 11.10 12.16 8.73 8.35 8.62
16-Mar-2020 31-Mar-2020 6.26 7.58 8.52 10.52 11.59 7.77 7.37 7.81
16-Mar-2021 31-Mar-2021 6.16 7.18 8.07 10.07 11.13 7.17 7.15 7.24
16-Mar-2022 31-Mar-2022 6.81 7.14 8.57 10.57 11.63 7.13 7.10 7.21
01-Jun-2022 14-Jun-2022 7.50 7.89 9.31 11.31 12.37 7.91 7.84 7.96
Source: Bloomberg, I-Sec Research

Table 15: AAA corporate bond spreads over G-sec have remained stable at ~40bps with BBB- corporate
spreads around 4.5% (%)
AAA 10Y
AA- A- spread BBB- AAA 10Y AAA 10Y
AAA spread corp BBB- spread
Start End spread vs. vs. 10Y g- spread vs. Bank spread NBFC spread
vs. 10Y g-sec spread vs. over AAA
10Y g-sec sec 10Y g-sec vs. 10Y g-sec vs. 10Y g-sec
10Y g-sec
16-Mar-2013 31-Mar-2013 0.96 2.01 2.91 4.26 1.03 0.82 1.13 3.30
16-Mar-2014 31-Mar-2014 0.89 1.43 2.33 3.68 0.90 0.79 1.01 2.80
16-Mar-2015 31-Mar-2015 0.62 2.00 2.86 3.43 0.65 0.52 0.77 2.82
16-Mar-2016 31-Mar-2016 1.03 1.69 3.25 4.00 1.06 0.93 1.20 2.97
16-Mar-2017 31-Mar-2017 1.23 1.96 3.77 4.59 1.45 1.09 1.28 3.36
16-Mar-2018 31-Mar-2018 0.78 1.31 3.06 4.37 0.79 0.75 0.84 3.59
16-Mar-2019 31-Mar-2019 1.17 1.76 3.76 4.82 1.39 1.01 1.28 3.65
16-Mar-2020 31-Mar-2020 1.32 2.26 4.26 5.32 1.51 1.11 1.55 4.00
16-Mar-2021 31-Mar-2021 1.02 1.91 3.91 4.97 1.01 0.99 1.08 3.95
16-Mar-2022 31-Mar-2022 0.33 1.76 3.76 4.82 0.32 0.29 0.40 4.50
01-Jun-2022 14-Jun-2022 0.39 1.81 3.81 4.87 0.41 0.34 0.46 4.48
Source: Bloomberg, I-Sec Research

13
Banking, June 17, 2022 ICICI Securities
Chart 14: 10Y g-sec has been inching up since the repo rate hike
10Y g-sec
9.50
9.00

8.50

8.00

(%)
7.50

7.00

6.50

6.00
5.50

May-18
Jan-16

Jun-22
Jun-15

Mar-17
Feb-13

Feb-20
Apr-14

Apr-21
Oct-17
Jul-12

Jul-19
Nov-14

Nov-21
Dec-18
Aug-16
Sep-13

Sep-20
Source: Bloomberg, I-Sec Research

Chart 15: G-sec yields surged 75bps since Mar’22 to 7.6% and corporate bond
yields by >80bps
15 10Y g-sec AAA AA- A- BBB-
14
13
12
11
10
(%)

9
8
7
6
5
Jun-15

Jan-16

May-18

Jun-22
Feb-13

Feb-20
Mar-17
Jul-12

Apr-14

Jul-19

Apr-21
Oct-17
Sep-13

Aug-16

Sep-20
Nov-14

Nov-21
Dec-18

Source: Bloomberg, I-Sec Research

Chart 16: Corporate bond spreads over G-sec have remained stable at ~40bps
with BBB- corporate spreads around 4.5%
AAA spread vs. 10Y g-sec AA- spread vs. 10Y g-sec
6
A- spread vs. 10Y g-sec BBB- spread vs. 10Y g-sec
5

3
(%)

0
Jan-16

May-18

Jun-22
Jun-15
Feb-13

Feb-20
Mar-17

Jul-19

Apr-21
Jul-12

Apr-14

Oct-17
Sep-13

Aug-16

Sep-20
Nov-14

Dec-18

Nov-21

Source: Bloomberg, I-Sec Research

14
 Banking, June 17, 2022 ICICI Securities

Annexure
Table 16: Banks historical retail TD rates
May- Mar- Jun- Jan- May- Aug- Mar- May- May- Dec- Feb- Jun-
Date of Update
2021 2022 2022 2022 2022 2021 2022 2022 2022 2021 2022 2022
Name of Bank (%) Axis Bandhan CUBK DCB Federal HDFC
7 days to 14 days 2.50 2.50 2.50 3.00 3.00 3.00 4.35 4.80 2.65 2.50 2.50 2.50
15 days to 29 days 2.50 2.50 2.50 3.00 3.00 3.00 4.35 4.80 2.65 2.50 2.50 2.50
30 days to 45 days 3.00 3.00 3.00 3.50 3.50 3.00 4.35 4.80 3.25 3.00 3.00 3.00
46 days to 2 months 3.00 3.00 3.00 3.50 3.50 3.25 4.35 4.80 3.65 3.00 3.00 3.00
2 months < 3 months 3.00 3.00 3.00 3.50 3.50 3.25 4.35 4.80 3.75 3.00 3.00 3.00
3 months < 4 months 3.50 3.50 3.50 3.50 3.50 3.50 5.05 5.50 4.00 3.50 3.50 3.50
4 months < 5 months 3.50 3.50 3.50 3.50 3.50 3.50 5.05 5.50 4.25 3.50 3.50 3.50
5 months < 6 months 3.50 3.50 3.50 3.50 3.50 3.50 5.05 5.50 4.25 3.50 3.50 3.50
6 months < 9 months 4.40 4.40 4.40 4.50 4.50 3.75 5.25 5.70 4.50 4.40 4.40 4.65
9 months < 12 months 4.40 4.40 4.75 4.50 4.50 4.75 5.25 5.70 4.75 4.40 4.40 4.65
1 year 5.10 5.10 5.25 5.25 5.75 5.00 5.55 6.00 5.40 4.90 5.00 5.35
12 months < 15 months 5.10 5.15 5.25 5.25 5.75 5.00 5.30 5.75 5.40 5.00 5.00 5.35
15 months < 24 months 5.10 5.20 5.30 5.25 5.75 5.00 6.00 6.10 5.40 5.00 5.00 5.35
24 months < 36 months 5.40 5.40 5.60 6.25 6.25 5.00 6.25 6.50 5.75 5.15 5.20 5.40
36 months < 60 months 5.40 5.40 5.60 6.25 6.25 5.00 6.25 6.60 5.75 5.35 5.45 5.60
> 60 months 5.75 5.75 5.75 5.60 5.60 5.00 6.25 6.60 5.75 5.50 5.60 5.75

Peak rate 5.75 5.75 5.75 6.25 6.25 5.25 6.25 6.60 5.75 5.50 5.60 5.75
Peak rate (upto 3 yrs) 5.40 5.40 5.60 6.25 6.25 5.25 6.25 6.50 5.75 5.15 5.20 5.40
Peak rate (above 3 yrs) 5.75 5.75 5.75 6.25 6.25 5.00 6.25 6.60 5.75 5.50 5.60 5.75
Source: Company, I-Sec Research

Table 17: Banks historical retail TD rates (continued)

Nov- Jan- May - Feb- Jun- Feb- Dec- Jan- Jun- Feb- Jun- Jan- Jan- Jun- Jun-
Date of Update
2021 2022 2022 2022 2022 2022 2021 2022 2022 2022 2022 2021 2022 2022 2022
Name of Bank (%) IDFC IndusInd KVB Kotak RBL SBI YES
7 days to 14 days 2.50 2.50 3.50 2.75 2.75 3.25 2.50 2.50 2.50 3.25 3.25 2.90 2.90 2.90 3.25
15 days to 29 days 2.50 2.50 3.50 3.00 3.00 3.25 2.50 2.50 2.50 3.75 3.75 2.90 2.90 2.90 3.50
30 days to 45 days 2.75 3.00 4.00 3.25 3.50 3.25 2.75 2.75 3.00 3.75 3.75 2.90 2.90 2.90 3.50
46 days to 2 months 2.75 3.00 4.00 3.50 3.65 3.50 2.75 2.75 3.00 4.00 4.00 3.90 3.90 3.90 4.00
2 months < 3 months 2.75 3.00 4.00 3.75 3.75 3.50 2.75 2.75 3.00 4.00 4.00 3.90 3.90 3.90 4.00
3 months < 4 months 3.25 3.50 4.50 4.00 4.00 3.75 3.00 3.00 3.50 4.50 4.50 3.90 3.90 3.90 4.50
4 months < 5 months 3.25 3.50 4.50 4.50 4.50 4.00 3.20 3.25 3.50 4.50 4.50 3.90 3.90 3.90 4.50
5 months < 6 months 3.25 3.50 4.50 4.50 4.50 4.00 3.20 3.25 3.50 4.50 4.50 3.90 3.90 3.90 4.50
6 months < 9 months 4.75 4.75 5.75 4.60 4.75 4.50 4.25 4.40 4.75 5.00 5.00 4.40 4.40 4.40 4.75
9 months < 12 months 4.75 4.75 5.75 5.50 5.50 4.50 4.40 4.40 4.75 5.25 5.25 4.40 4.40 4.60 5.00
1 year 5.25 5.75 6.00 6.00 6.00 5.40 4.75 4.90 5.50 6.25 6.25 5.00 5.10 5.30 5.75
12 months < 15 months 5.25 5.75 6.00 6.00 6.00 5.40 4.75 4.90 5.65 6.25 6.25 5.00 5.10 5.30 6.00
15 months < 24 months 5.25 5.75 6.00 6.00 6.00 5.40 4.90 5.00 5.65 6.25 6.25 5.00 5.10 5.30 6.00
24 months < 36 months 5.75 6.00 6.00 6.50 6.50 5.50 5.15 5.15 5.75 6.50 6.50 5.10 5.10 5.35 6.25
36 months < 60 months 6.00 6.25 6.25 6.50 6.50 5.65 5.30 5.30 5.90 6.30 6.30 5.30 5.30 5.45 6.25
> 60 months 6.00 6.00 6.00 6.00 6.00 5.80 5.30 5.30 5.90 5.75 5.75 5.40 5.40 5.50 6.25

Peak rate 6.00 6.25 6.25 6.50 6.50 5.80 5.30 5.30 5.90 6.50 6.50 5.40 5.40 5.50 6.25
Peak rate (upto 3 yrs) 5.75 6.00 6.00 6.50 6.50 5.50 5.15 5.15 5.75 6.50 6.50 5.10 5.10 5.35 6.25
Peak rate (above 3 yrs) 6.00 6.25 6.25 6.50 6.50 5.80 5.30 5.30 5.90 6.30 6.30 5.40 5.40 5.50 6.25
Source: Company, I-Sec Research

15
Banking, June 17, 2022 ICICI Securities
In case of industry/sector reports or a report containing multiple stocks, the rating/recommendation for a particular stock may be based on the last released stock
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New I-Sec investment ratings (all ratings based on absolute return; All ratings and target price refers to 12-month performance horizon, unless mentioned otherwise)
BUY: >15% return; ADD: 5% to 15% return; HOLD: Negative 5% to Positive 5% return; REDUCE: Negative 5% to Negative 15% return; SELL: < negative 15% return

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