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Informist, Friday, Aug. 8, 2025

MUMBAI – The Nifty Bank sectoral index is expected to continue its downward momentum next week following the quarterly financial results announced by the country's largest bank Friday, which hinted at a slowdown in the growth of India Inc. Though State Bank of India recorded a net profit of INR 191.60 billion for the June quarter, up 12.5% on year, its corporate loan book grew just 5.7%. Analysts said the slowdown in lending to corporations by the country's biggest lender suggests slower private capital expenditure in the near term. The bank said it expects corporate loans to pick up pace from the December quarter.

With SBI's earnings announcement Friday, all banks that are part of the Nifty Bank index have declared their results for the June quarter. The commonality in all these results remains their lower margins and higher profit due to treasury gains. This reality will continue to put pressure on bank stocks in the near term, analysts said.

The Nifty Bank index closed 0.9% lower Friday at 55004.90 points, with all its constituents ending in the red. IndusInd Bank's shares fell the most, down over 3% Friday. Over the course of the week, the Nifty Bank fell over 600 points, largely because of the weak quarterly results from major banks, analysts said.

In its technical view, Kotak Securities said, "For Bank Nifty, the short-term texture is weak, but a fresh sell-off is possible only if it falls below 54,700. In that case, it could slip to 54,000-53700. On the flip side, if it rises above 55,300, it could move up to 55700-56000."

TOP HEADLINES

* Earnings Review: Equitas Small Fin Bk reports net loss as provisions double

* Earnings Review: SBI tops Street view on PAT due to treasury gains; NII flat

* RBI gives in-principle approval to AU Small Fin Bk to become universal bank

* RBI releases draft directions on settlement of claims to deceased customers

* RBI issues norms on non-fund based credit facilities to expand infra finance

* RBL Bank gets RBI OK to hold 5% plus stake in Utkarsh Small Finance Bank

* RBI Policy: Many PM Jan Dhan accounts due for KYC; banks organising camps

* RBI Policy: Large cos relying more on mkt, less on banks to source funds

* RBI Policy: To expand RBI Retail Direct scope to enable invest in T-bills

* India Ratings says elevated loan-deposit ratio remains a challenge for banks

* SC cancels medical bail given to Dheeraj Wadhawan in bank loan fraud case

* IndusInd Bank appoints Rajiv Anand as MD, CEO for 3 years, effective Aug 25

* AU Small Finance Bank partners with SBI Life to offer insurance products

* HC junks former Dewan Housing head Wadhawan bail plea in bk loan fraud case

* Expect slippages to moderate, stabilise going forward, says Federal Bank

* Analyst Concall: Federal Bank doesn't see Q2 NIM dropping more than 5-10 bps

* Earnings Review: Federal Bank PAT dn 15% as provisions up nearly threefold

* Expect to pick final bidder for IDBI Bank sale by Mar, says divestment secy

* NCLT junks ICICI Bk plea vs lower payout in IBC plan for Rajesh Construction

* RBI OKs amalgamation of New India Co-operative Bank into Saraswat Co-op Bank

* IDFC FIRST Bank allots 812.7 mln preference shrs to Currant Sea Investments

Following are the resistance and support levels for the stocks for next week as per calculations based on their prices on the National Stock Exchange:

End

Reported by Kabir Sharma

Edited by Rajeev Pai

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