Operating earnings to surprise positively Banks’ 2QFY09 operating earnings could surprise due to robust top line growth at 20-50% driven by stronger than est. loan growth (25%) and less margin compression as banks raised PLRs in Aug’08. Further, strong growth in core fee revenues and benign cost increases to offset the sharp contraction in trading profits. Hence, operating earnings est. to also rise by 20% to 50%. Private banks like HDFC Bk, Axis and Yes Bk to lead with +35% as they gain market share. Most of the large banks incl. ICICI Bk, SBI, BOI and Union to also post +25% growth at the operating level. Key laggards likely to be OBC and Canara at <10%