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