Banks And Insurance Q3 Preview: Earnings Outlook Poised For Recovery, Says Motilal Oswal

Banks And Insurance Q3 Preview: Earnings Outlook Poised For Recovery, Says Motilal Oswal 

A cashier counts Indian one hundred-rupee banknotes in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

The earnings outlook is poised for recovery, led by healthy traction in economic recovery and abating concerns of sharp deterioration in asset quality.

On the growth front, retail disbursements are showing healthy recovery (led by tractors, two-wheeler, housing loans, and gold loans), with certain segments reaching pre-Covid-19 levels or even higher.

On the other hand, banks remain cautious on the unsecured book. Commercial vehicle and corporate loan demand remains tepid.

Overall, we estimate business growth to pick up, aided by a good festive season, and expect systemic loan growth at 4.5% for FY21E

Click on the attachment to read the full report:

Motilal Oswal Banks & Insurance Q3 FY21 Results Preview.pdf
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