Banking And Financial Sector Q4 Preview - NPA Reporting To Normalise; Earnings Outlook Positive: Nirmal Bang 
A man holds a two thousand Indian rupee banknote for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Banking And Financial Sector Q4 Preview - NPA Reporting To Normalise; Earnings Outlook Positive: Nirmal Bang 

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.

Nirmal Bang Report

With the Supreme Court’s standstill order on asset classification lifted, reporting of non performing assets will normalize, reflecting the true extent of recognized stress.

Moreover, we would also keenly watch incremental trends and commentary on restructuring and overall asset quality outlook.

While the economic recovery has been on an upward trend sequentially since lifting of the lockdown, credit growth has continued to remain lacklustre.

For the latest reported period (March 2021), systemic credit growth stood at 6.4% YoY.

For our banks’ coverage, we expect overall advances growth of 6% YoY and 3.3% QoQ (private banks to grow higher).

We expect growth to be driven by retail advances.

Click on the attachment to read the full report:

Nirmal Bang Banking and Financials Sector-4QFY21 Result Preview - 7 April 2021.pdf

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