JPM on Shriram Fin OW, TP cut to Rs 1095 from Rs 1215 Reported a mixed 2Q. While operating metrics came in better vs. JPMe (NII +3% vs. JPMe, PPOP +7% vs. JPMe), Asset Quality (AQ) trends disappointed with provisions up +28% q/q, credit costs at 235bps (+44bps q/q) and GS-2+3 at 11.69% (+9bps q/q). Management’s post earnings commentary confirmed that elevated credit costs could continue for at least another quarter or two (3Q and likely 4Q) before normalizing, indicating SHFL will miss its 2% credit cost guidance for FY27. SHFL highlighted this to be a temporary issue and attributed it to some agri-stress due to deficient rains (El Niño) in certain geographies, worsened by seasonality (2Q is seasonally weak), and affirmed that the deterioration was not broad-based and limited to select products. CITI on Shriram Fin Buy, TP cut to Rs 1100 Q2 in-line, with sharper-than-expected NIM expansion (9.52% vs. 9.04% QoQ)—driven by accretive deployment of excess liquidity—counterbalanced by elevated credit costs (2.3% vs. 1.9% QoQ) While GS3/GS2 held steady at 4.65%/7.04% (vs. 4.64%/6.96% QoQ), improved coverage at 51.5%/7.04% (vs. 51%/6.96%) and higher write-offs drove credit cost higher. AUM growth was robust at 17% YoY/4.9% QoQ, anchored by Gold (+68% YoY), PV (+20% YoY), CV (+19% YoY), and MSME rebound (14% vs. 8% in Q1). With drought conditions in select regions and crude price headwind weighing on outlook, management flagged elevated credit costs for next 2–3 quarters and conservatively guided FY27 AUM growth at 15–17%, despite 9% YTD growth Equity buffer should keep NIMs elevated near-term, before normalizing. MOSL on Shriram Fin Buy, TP Rs 1155 2QFY27 PAT rose 60% YoY to Rs 36.8b (in line). NII in 2QFY27 grew 40% YoY to INR84.1b (in line) Other income grew ~15% YoY to INR4.2b (8% lower than our est.) Opex grew ~4% YoY to INR20.2b (~9% lower than MOFSLe) Cost-to- income ratio dipped ~290bp QoQ to ~22.9% (PQ: 25.9%/PY: 30.5%). SHFL expects its C/I ratio to remain at 25% and Opex/AUM at 2.5% over medium to long term Management moderated its FY27 AUM growth guidance to 15-17% from 18% earlier, factoring in weak monsoons and uncertainty arising from West Asia conflict. @CNBCTV18News @_RituSingh

Bernstein on SBI Cards U-P, TP Rs 430 2Q show a sharp earnings recovery, but little evidence of a turnaround in underlying growth drivers. PAT grew 75% YoY, largely supported by lower credit costs, while retail spends growth moderated to 6%. Stable revolver share offers some respite, but does not establish a reversal of structural pressure on interest-earning balances With credit costs now approaching a steady-state level, see limited room for earnings growth without a meaningful recovery in spends and eventually interest-earning advances UBS on SBI Cards Neutral, TP Rs 635 2QFY27 PAT of Rs7.8bn grew 75% YoY ahead of UBSe, driven by lower credit cost, though receivables growth continues to remain tepid at 0.2% QoQ (- 2.5% YoY). NII was flat YoY largely reflective of weak receivables growth. PPOP decline of 1.4% YoY was also in-line. Credit cost of Rs8.2bn or 5.6% of average receivables was down 37% YoY and also 7% lower vs UBSe. As a result, PAT of Rs7.8bn was a 9% beat vs UBSe. Retail spends grew 6% YoY and fees and commission income rose 7.4% YoY. Management expects spends and receivables to pick up from Q3, but sees limited scope for further credit cost improvement from current levels Key watchpoints are conversion of spends into interest-earning receivables and the ability to sustain margins amid rising funding costs. Macquarie on SBI Cards Neutral, TP Rs 600 2Q: Earnings beat, but growth remains subdued Margin defense to be challenging Asset quality improves; co increased Stage 2 coverage by 60bp QoQ & added a Rs0.3bn overlay, taking the total to Rs1bn. Management expects credit costs to remain at 5.5-6.0% going forward. CLSA on SBI Cards O-P, TP Rs 700 2QFY27 PPOP was largely in line while PAT beat number by 7% due to lower credit costs. Credit costs declined 100bp QoQ to multi-quarter lows, & were 40bp better than expected. Retail spend growth moderated to mid-single-digit, driven by the festive timing impact. This led to loan growth declining 2% YoY (similar to peers). However, card acquisition pace has picked up well over past two quarters. Calculated NIM was largely stable at 11.8%, but it should moderate a bit due to rate hikes. Fee income was stronger than our estimate, driven by higher interchange rates @CNBCTV18News @_RituSingh

Banks - Q2 Review - IDFC First/Kotak/IndusInd & AU Small UBS on IDFC First BK Neutral, TP Rs 82 Reported PAT of Rs10.45bn, up 196.5% YoY but down 2.8% QoQ, with core PAT rising 15.5% QoQ to Rs10.36bn. NII grew 21% YoY/3.5% QoQ, while NIM moderated 32bp QoQ to 5.58%, primarily due to denominator impact of FCNR-backed lending, surplus liquidity & changes in asset mix Fee and other income grew 24.5% YoY, supporting 21.9% growth in core operating income. Opex increased 16% YoY, with positive operating jaws of c590bp driving 38.5% YoY growth in core operating profit. Reported C/I ratio improved 358bp YoY/57bp QoQ to 70.2%, although it remains elevated. Provisions declined 21.7% YoY and were broadly flat QoQ, despite Rs1bn of standard provisions on FCNR-backed loans. Credit cost moderated to 1.38% of average funded assets and 1.01% of average assets, while RoA stood at 0.93% Management expects NIM to recover to c5.8% by 4QFY27 and retained its 1.5-1.6% credit cost guidance on loans GS on IDFC First BK Neutral, TP Rs 85 2QFY27 largely in-line with expectations, with PAT of Rs10.5bn (0.9% annualized RoA). Core PPoP growth 2% above GSe helped by core revenue growth (+22% YoY) continued to outpace cost growth (+16% YoY), in-line with the bank's guidance of delivering an operating jaw of 500bps+. Loan growth (ex-FCNR-B) remained strong at 21% YoY (+5% QoQ), with management sounding confident on sustaining 20%+ growth, while deposit growth excluding FCNR-B moderated to 14% YoY as the bank consciously ran down high-cost bulk deposits. NIMs excluding FNCR-B related impact declined by 16bps QoQ driven mainly by higher excess liquidity/asset mix shift and an adverse day-count impact Bank expects strong reversal in F4Q27. Management guided to a recovery toward 5.8% NIM by 4QFY27 (compared to 5.9% in F1Q27 and 5.58% in F2Q27). Asset quality remained steady, with underlying credit cost moderating QoQ to 1.3% (1.5% last quarter) and PCR healthy at ~70%. Bernstein on Kotak BK Market perform, TP Rs 500 Delivered healthy 29% YoY EPS growth (+2% QoQ), driven by strong balance-sheet growth (+25% YoY, +14% QoQ), which more than offset weaker headline RoA (-22bps QoQ, +4bps YoY). Loan growth remained healthy but was corporate-led, particularly after adjusting for FCNR(B)-linked loans, potentially contributing to sharpest NIM compression among four large PVBs. Strong loan growth, led by corporate and SME Asset quality remains benign; higher provisions largely reflect standard asset buffers CLSA on Kotak Bk O-P, TP Rs 485 PAT was largely in line with estimates, adjusted for several FCNR-related one-offs, it was a marginal beat This was primarily driven by stronger-than-expected loan growth. Pursuant to RBI’s directives, Kotak acquired Rs96bn of loan assets from its subsidiary, KMIL, in quarter. Organic customer asset growth, ex of FCNR self-leverage, picked up from 16% YoY in the prior quarter to 18% YoY in 2QFY27. While growth continues to be driven more by corporate and SME lending, there was a pickup in unsecured retail credit. Reported NIM declined c.20bp QoQ, largely due to the FCNR inflows of c.Rs550bn. Core fee income growth improved to 15% YoY from 11% in the prior quarter and single-digit growth earlier Bernstein on IndusInd BK O-P, TP Rs 1000 IndusInd’s recovery is broadening, with stronger lending momentum and improving asset quality supporting higher returns despite continued contraction in personal loan and credit card balances. Standalone PAT grew 17% QoQ, taking RoA to 0.82% from 0.75%, supported by lower provisions and stronger fee income With further credit-cost benefits likely to be more measured, margin recovery and sustained fee growth become increasingly important to achieving the bank’s 1% exit RoA ambition. HSBC on IndusInd BK Buy, TP Rs 1180 In 2QFY27, IIB’s earnings performance was underscored by sharp improvements in asset quality, strong fees Lower credit costs will likely be near-term catalyst, while higher growth, margin recovery would play out in long term Upgrade EPS by 5-10% for FY27-29e Jefferies on IndusInd Bk Buy. TP cut to Rs 1130 Q2 profit of Rs12bn, vs. loss last yr, was ahead with lower credit cost & better fee/ treasury. Loans grew by 11% YoY, NII by 4%, & asset quality continues to improve See levers to improve profitability through better PPoP, even as credit costs are near the bottom Lower earnings estimates to factor in tighter banca fee rules & a tad higher credit cost CLSA on IndusInd BK Hold, TP Rs 910 2QFY27 PPOP was 13% ahead of estimate, mainly driven by strong fee income, while slightly lower provisions resulted in a big PAT beat. Fee income grew 22% YoY, with the fee-to-asset ratio improving c.20bps QoQ. It was also broad-based. Loan growth continued to accelerate, albeit led by wholesale, while core NIM declined 12bps QoQ due to the impact of FCNR deposits and an adverse loan mix. Management maintained its FY27 guidance of industry-level loan growth and a 1% exit ROA. Asset quality continued to improve, with net slippage declining 40bps QoQ to 1.1% (now at a steady-state level) Macquarie on IndusInd BK U-P, TP Rs 760 PAT beats estimates, aided by higher non-interest income ROA improves despite margin compression but there are headwinds Management retained its 4Q FY27 exit-quarter RoA guidance of 1.0%, vs reported ROA of 82bps. While believe 4Q FY27 target is achievable, increasing ROA beyond 1% to medium-term target of 170bps could be challenging. UBS on IndusInd BK Sell, TP Rs 870 Reported PAT of Rs12.4bn in Q2 (12% ahead of UBSe), supported by stronger fee income and lower credit cost (1.40% vs 1.74% in Q1) NII grew 3.6% YoY NIM declined 12bp QoQ to 3.23% vs normalized 3.35%, largely reflecting FCNR(B)- related yield pressure, and some change in mix. Reported loan yields declined 26bp to 10.67%, while deposit costs rose 3bp to 5.96%. Other income grew 26% QoQ/36% YoY, including cRs1bn of incremental FCNR-related FX sales income and AFS/HTM investment gains, while core fee-to-assets improved to 1.35% from 1.20%. Opex rose 7% QoQ on business and growth spends, while PPoP grew 4% QoQ reported/c15% normalized. RoA improved QoQ to 0.87% from normalized 0.63% GNPA/NNPA declined sequentially to 2.7%/0.8%, although CASA weakness and funding cost pressure constrain margin recovery. Kotak Inst Eqt on AU Small BK Reduce, TP Rs 950 AUBANK reported 16% RoE & 50% earnings growth yoy in 2QFY27 led by sharp decline in provisions and strong PPOP growth. Asset quality remains stable with NNPL ratio of 0.8%, slippages of 2.5% and credit cost of 1.0%. NIM declined 10 bps qoq AU is well positioned to deliver strong RoE and growth over medium term. JPM on AU Small BK OW, TP Rs 1165 Strong 2QFY27: NII rose by 32% y/y, PPOP rose by 25% y/y & PAT rose by 53% y/y Gross advances growth accelerated to 27.9% y/y AU remains confident of delivering 25% y/y loan growth (2.5x of Nom GDP growth). CASA ratio improved by 70bps q/q to 29.5% With only 30% of the loan book being floating rate, NIM outlook is challenged by a potential rise in deposit costs with improving CASA traction and rising share of unsecured loans providing a partial offset Gross slippages in 2Q declined by 69bps y/y, however, rose by 24bps q/q to 2.62% (JPM calculation), which AU attributed purely to seasonality Credit costs (on assets) declined by 7bps q/q to 0.70%, with 1H credit cost at 72bps (calculated), AU remains on track to deliver ahead of its 90bps guidance for FY27 @CNBCTV18News @_RituSingh @latha_venkatesh

CLSA on M&M Fin O-P, TP Rs 405 Delivered another strong quarter, with 2QFY27 PPOP/PAT beating estimates by 5%/12%, driven by higher fees and lower credit costs. PPOP growth was a healthy 20% YoY. Calculated net slippages declined c.15bps YoY and the stage 2 + 3 loans ratio declined to a multi-year low. Disbursement growth has accelerated over the past two quarters and should translate into stronger AUM growth in the coming quarters. That said, a largely fixed-rate loan book and c.50% floating-rate borrowings could put pressure on spreads in a rate hike cycle. CITI on M&M Fin Buy, TP Rs 420 Despite 30bp NIM compression, contained credit costs (at 1.55%, seasonally weak quarter), fee/assets of 1.6%, and slight opex moderation sustained RoA at 2.2%, with PAT up 55% YoY (-2% QoQ), surpassing CitiE. Company navigated 1H volatility well augmenting underwriting scorecards, portfolio monitoring, and collections. GS3/GS2 improved to 3.42%/4.7% (vs 3.45%/4.87% in 1Q, 3.41%/4.76% QoQ) on higher CE of 97% (vs 95%/96% YoY/QoQ). Loan spreads narrowed 30bps as growth tilted toward trade advances (incremental 3% QoQ delta) & lifted liquidity to 10% of balance sheet size. Disbursements rose 22% YoY, broad-based across PV (+28%), pre-owned vehicles (+15%), CV/CE (+16%), and tractors (+13%), driving 15%+ AUM growth. Notwithstanding rural headwinds, resilient 1H credit costs reinforce management's confidence in retained guidance. Nomura on M&M Fin Buy, TP cut to Rs 400 Asset quality holding up well 2QFY27 net profit: 14% vs estimates Trim net profit estimates by 1-9% over FY27-29F; Insurance distribution reform a risk HSBC on M&M Fin Buy TP cut to Rs 340 Healthy operating performance driven by higher fee income and lower credit cost led to beat in our 2QFY27 estimates Tweak FY27-29e EPS estimates to reflect higher AUM growth outlook but rising pressure on NIM and fees Lower TP at an implied valuation at 1.5x FY28e BVPS (from 1.7x) @CNBCTV18News @_RituSingh