BFSI Q2 Earnings Preview - Pace Of Business To Have Picked Up; Asset Quality Is Still A Concern: Anand Rathi
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Anand Rathi Report
Healthy recovery was seen for most lenders in disbursements, and collection efficiency in Q1 FY22 is expected to have continued.
However, slippages and restructuring are expected to have been high, which would have been counterbalanced by adequate provision buffers in the last few quarters that would have minimised the impact on profit and losses.
The quarter saw -
resolution of Dewan Housing Finance Corporation Ltd., a positive and,
downgrade of SREI (negative - especially private sector banks).
Though overall credit growth was in single digits, retail and small and medium enterprise growth could have seen a gradual demand pickup as economic recoveries continue.
Corporate growth is expected to have been subdued as private capex would take time to pick up.
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