Banks Earnings Preview - Mixed Q4; Stress, Business Outlook Vital: Prabhudas Lilladher
Indian rupee banknotes are counted in India. (Photographer: Dhiraj Singh/Bloomberg)

Banks Earnings Preview - Mixed Q4; Stress, Business Outlook Vital: Prabhudas Lilladher

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.

Prabhudas Lilladher Report

With Honorable Supreme Court lifting its direction on non-performing asset recognition, we expect to see a realistic asset quality impact (not visible since last four quarters).

We watch out for deviation in slippages from assessment of stress and pro-forma reporting, while fresh restructuring should be negligible than reported in Q3 FY21.

Although banks have done their part of cushioning 35- 130 basis points of loans as buffer provisions and with strong provision coverage ratio, strain will be lower.

A favorable base of lockdown and lower provisioning requirement will boost earnings.

Click on the attachment to read the full report:

Prabhudas Lilladher Banks Q4FY21 Results Preview.pdf

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