Bullish signal on daily chart
Trend in non-interest income
Non-interest income increased from 4,657.2 crore in FY 2019 to 5,372.1 crore in FY 2020 primarily due to: Increase in commission, exchange and brokerage income primarily on account of increase in direct banking fees and charges, credit card fees and branch banking fees, offset, in part, by decrease in third party referral fees due to drop in commission on mutual fund distribution mainly on account of change in regulations and other referral fees
Some more industrial segment in slowdown
Construction Equipment (CE) industry which reported decent growth since 2014, showed signs of slowdown as overall Industry was down by 24% YoY. Demand was muted because of continues volatility and uncertainty of payments from most of the government bodies. New project allocation was slow from departments like NHAI etc. Rural demand continues to be better than other segments. Overall delinquency percentage of the CE portfolio witnessed some stress in last FY.
Pain point: MSME and MFI
The MFI segment has been impacted in growth first by monsoons and by regional issues that impacted recoveries. The delinquency levels were higher on YoY basis. The Bank has continued to see recoveries in its stressed cases as our recovery actions are now close to fruition. The portfolio delinquency in this sector is projected to be better than other sectoral SME portfolios