Banking Sector Q3 Round Up: Numbers Indicate A Better-Than-Expected Asset Quality Outcome, Says Nirmal Bang
Employees work at a Housing Development Finance Corp. bank branch in Mumbai. (Photographer: Vivek Prakash/Bloomberg)

Banking Sector Q3 Round Up: Numbers Indicate A Better-Than-Expected Asset Quality Outcome, Says 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

Q3 FY21 results for banks reassured investors that the asset quality impact of the pandemic has been much lower than what was initially expected.

Most banks under Nirmal Bang’s coverage reported restructuring of less than 2% compared to expectation of 5-10% initially.

Provisioning in Q3 FY21 was 9.3% higher Quarter on Quarter but given the coverage ratios on the existing stock of Non-Performing Assets, Nirmal Bang believes the overall banking sector is at the tail-end of a high credit cost phase.

Banks’ credit growth picked up, with loans growing 6.8% YoY in 3QFY21 vs 5.8% YoY in 2QFY21.

Click on the attachment to read the full report:

Nirmal Bang Banking & Financials Sector Q3 FY21 Result Review.pdf

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