Maintain 'hold' on IDFC - Geojit BNP Paribas Financial Services

- Company's 3QFY13 earnings came in higher than analysts' estimates on account of lower provisions and lower operating costs.

- Adjusting for provisions/employee costs, PAT was lower than market estimates.

- Non-interest income declined 15% on account of lower capital gains.

- Loan growth was flat on a y-y basis, primarily on account of limited financing opportunities. However, management has maintained its guidance of 20% growth implying 8% q-q growth in 4Q.

- Exposure to the energy sector marginally reduced to 39%, whereas it increased by 100bp to telecoms.

- NIMs marginally contracted q-q to 4.2% from 4.3%.

- Revenue from Institutional broking and I-banking business declined to Rs.8 crore (down 61%, y-y and 12% q-q).

Source : Equity Bulls

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