ADVERTISEMENT

Banking And Financial Sector Update - Second Wave Impacts Growth, NPA; Revival In H2 FY22: ICICI Direct

Banking And Financial Sector Update - Second Wave Impacts Growth, NPA; Revival In H2 FY22: ICICI Direct

An employee holds a stack of electronic payment receipts and Indian Rupee banknotes at a BPCL fuel station in Bengaluru. (Photographer: Dhiraj Singh/Bloomberg)
An employee holds a stack of electronic payment receipts and Indian Rupee banknotes at a BPCL fuel station in Bengaluru. (Photographer: Dhiraj Singh/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.

ICICI Direct Report

The banking sector has been slightly underperforming against the overall market in recent months (Bank Nifty up 3.4% versus the Nifty up 5.9% in the past three months) as emergence of a second wave has made markets cautious.

The pandemic has halted the gradual progress on credit growth and delayed a swift recovery by posing asset quality challenges in the near term.

However, we believe the impact of the second wave should be lower than last year (given partial/localised lockdowns).

In addition, we believe that pent up demand, rising input prices and capacity utilisation should keep retail growth unabated and boost capex led credit demand ahead.

Click on the attachment to read the full report:

ICICI Direct Banking Sector Report.pdf

DISCLAIMER

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.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.