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Piran Engineer

Vice President and Research Analyst at CLSA

Piran Engineer is a Vice President and Research Analyst at CLSA, specializing in Indian banking and financial services with detailed coverage of major institutions like ICICI Bank and Bandhan Bank. He has consistently maintained bullish recommendations on these companies, such as a recent Buy rating on ICICI Bank with a notable price target, and an Outperform rating on Bandhan Bank, reflecting robust sector insights. With a career anchored at CLSA, Piran Engineer has established a track record of well-followed investment calls and contributes actively to consensus rankings, leveraging his expertise in financial sector equities. His professional credentials include advanced analytical acumen in banking stocks and compliance with regulatory standards in the equity research industry.

Piran Engineer's questions to ICICI BANK (IBN) leadership

Piran Engineer's questions to ICICI BANK (IBN) leadership • Q2 2026

Question

Piran Engineer questioned why net interest margins (NIMs) are expected to be range-bound for only the next two quarters, rather than improving over a longer 4-6 quarter horizon. He also asked about the proportion of term deposit growth acquired in the last six months and the cause of the sequential decline in provisions for retirement benefits. Finally, he sought clarification on whether the improvement in slippages was solely due to personal loans and credit cards (PLCC) or also reflected broader improvements across other retail segments.

Answer

Anindya Banerjee, CFO, explained that while NIMs have navigated the cycle well, too many moving parts (monetary policy, competition, loan mix) make it difficult to project beyond the next couple of quarters, hence the range-bound expectation. He declined to provide specific data on term deposit acquisition. Regarding retirement benefits, Mr. Banerjee attributed the Q1 to Q2 decline to typical gratuity-related provisions after increments and the absence of an increase in DNS allowance for pensioned employees this year, stating he doesn't expect overall OpEx to increase at the Q2 pace. He confirmed that in addition to corporate/business banking net deletions, most other retail portfolios also showed sequential improvement in slippages.

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Piran Engineer's questions to ICICI BANK (IBN) leadership • Q1 2026

Question

Piran Engineer from CLSA sought clarification on the 15 bps reduction in cost of deposits, the rationale for trimming wholesale deposits if they are cheaper, and the reasons for the slowdown in vehicle loan growth to 3%.

Answer

Anindya Banerjee, Group CFO, reiterated that the Q1 NIM calculation change had a negligible impact. He clarified that the bank was running off past, higher-cost wholesale deposits, not currently cheaper ones. He attributed the slow vehicle loan growth to both a slowdown in the underlying asset class and persistent price competition.

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Piran Engineer's questions to ICICI BANK (IBN) leadership • Q1 2026

Question

Piran Engineer from CLSA inquired about the components of the 15 bps drop in cost of deposits, why the bank was trimming lower-cost wholesale deposits, and whether the slowdown in vehicle loan growth was due to pricing caution or weak demand.

Answer

Anindya Banerjee, Group CFO, clarified that the Q1 margin calculation change had a negligible impact and the drop was driven by rate cuts and tax refunds. He explained that the reduction in wholesale deposits was a function of managing overall liquidity and letting older, higher-cost deposits run off. For vehicle loans, he cited both intense price competition and slower underlying asset growth as contributing factors.

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Piran Engineer's questions to ICICI BANK (IBN) leadership • Q4 2025

Question

Piran Engineer from CLSA sought clarification on the reasons for easing CASA pressures, the slowdown in vehicle loan growth, the nearly 10 basis point rise in the cost of deposits, and the composition of the builder portfolio, specifically the LRD component.

Answer

Executive Anindya Banerjee reiterated that CASA pressure should logically ease due to monetary policy and liquidity improvements. He attributed the vehicle loan slowdown to underlying demand and marginal pricing factors, not asset quality concerns. The rise in deposit costs was partly due to the number of days in the quarter. He confirmed the builder portfolio includes a reasonable, though undisclosed, component of Lease Rental Discounting (LRD).

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Piran Engineer's questions to ICICI BANK (IBN) leadership • Q1 2025

Question

Piran Engineer of CLSA asked why banks have been unable to pass on rising funding costs to borrowers despite strong loan demand, and whether a focus on higher-quality customers within each product was compressing effective yields.

Answer

Executive Anindya Banerjee explained that while some cost pass-through occurred in FY22-23, further increases are constrained by intense competition, especially in corporate and mortgage lending. He agreed that the banking sector's broad focus on the prime customer segment, where pricing is very competitive, is a key factor influencing overall yields.

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Piran Engineer's questions to ICICI BANK (IBN) leadership • Q4 2024

Question

Piran Engineer from CLSA questioned if competitors slowing corporate loan growth presents an opportunity for ICICI Bank. He also asked about the reasons for slower fee income growth and sought clarification on the optimization of external sourcing costs for personal loans.

Answer

Anindya Banerjee, Executive Director, stated that the bank is open to corporate loan opportunities that meet its risk-reward criteria but has been less competitive on pricing in some areas. He explained that slower fee income growth was seasonal after a strong festive Q3 and not a strategic trade-off with yields. He clarified that sourcing cost optimization was a broad-based effort across categories, not just personal loans, contributing to OpEx moderation.

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Piran Engineer's questions to HDFC BANK (HDB) leadership

Piran Engineer's questions to HDFC BANK (HDB) leadership • Q1 2026

Question

Piran Engineer from CLSA questioned the expectation for credit costs to normalize given the benign outlook and asked about the extent of interest rate cuts on fixed-rate lending products like auto and personal loans.

Answer

CFO Srinivasan Vaidyanathan clarified that the expectation of credit costs reverting to the mean is a long-term statistical view, not a reflection of any foreseeable stress. CEO Sashidhar Jagdishan stated it is difficult to gauge competitor rate actions on fixed-rate loans but anticipates competitive intensity will increase during the upcoming festive season.

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Piran Engineer's questions to HDFC BANK (HDB) leadership • Q1 2026

Question

Piran Engineer from CLSA asked which specific segments are expected to drive the normalization (i.e., increase) of credit costs in the future. He also inquired about the extent of interest rate cuts on fixed-rate lending products like car and personal loans.

Answer

Chief Financial Officer Srinivasan Vaidyanathan clarified that the 'reversion to mean' for credit costs is a statistical expectation for the industry over time and not based on any foreseeable stress in HDFC Bank's portfolio, which remains strong. MD & CEO Sashidhar Jagdishan added that it is difficult to quantify competitor rate cuts, noting that such competitive intensity typically increases during the festive season rather than in the slower first quarter.

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Piran Engineer's questions to HDFC BANK (HDB) leadership • Q4 2025

Question

Piran Engineer asked if the bank has started cutting lending rates on fixed-rate products like vehicle or personal loans. He also inquired about the composition, customer profile, and signs of stress within the unsecured business loan portfolio.

Answer

CFO Srinivasan Vaidyanathan responded that the bank has not made broad cuts to fixed lending rates but continues to use a consistent risk-based pricing model. Regarding the unsecured book, he explained that about 75-80% of the ~INR 2 trillion personal loan portfolio consists of salaried customers. He confirmed that the bank has not experienced any stress in this book, and its performance remains strong across various customer segments.

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Piran Engineer's questions to HDFC BANK (HDB) leadership • Q4 2025

Question

Piran Engineer from CLSA asked if the bank has started cutting lending rates on fixed-rate products like vehicle or personal loans following the repo rate cut. He also requested details on the unsecured business loan portfolio, including customer profile, acquisition strategy, and any signs of stress.

Answer

Executive Srinivasan Vaidyanathan responded that the bank has not implemented broad rate cuts on fixed-rate products but continues to use its consistent, risk-based pricing model. On the unsecured book, he detailed that personal loans of nearly ₹2 trillion are predominantly (75-80%) to salaried customers. He stated that the bank has not experienced any stress in this portfolio, which performs well across various customer segments, and that these loans are offered through multiple channels to individuals, proprietors, and merchants as part of a broader relationship strategy.

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