BFSI Sector Q4 Earnings Preview - Cautiously Optimistic: Axis Securities

BFSI Sector Q4 Earnings Preview - Cautiously Optimistic: Axis Securities

A cashier counts Indian one hundred-rupee banknotes at an Oriental Bank of Commerce branch 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.

Axis Securities Report

Banks - Q4 FY21 will be the first quarter of actual reporting of non-performing asset as the Supreme Court standstill ends. This will aid better clarity on the asset quality front.

NBFCs - Liquidity in the system aided by gradual recovery has helped non-banking financial companies to report relatively stable performances.

Small Finance Banks - Disbursements are likely to pick up QoQ with Q4 being a seasonally strong quarter.

Microfinance - We expect the focus to shift on improving disbursements. Credit costs are expected to remain elevated backed by fears of rising Covid-19 cases and sub-par collections in certain key geographies.

Insurance/Credit Cards - In the life insurance space, a gradual recovery in new business premium is expected.

Click on the attachment to read the full report:

Axis Securities BFSI-Q4FY21-EarningsPreview.pdf
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This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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