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BFSI Sector Check - August Bounce Rates Better Than March Average: ICICI Securities

BFSI Sector Check - August Bounce Rates Better Than March Average: ICICI Securities

<div class="paragraphs"><p>A man holds a two thousand Indian rupee banknote for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
A man holds a two thousand Indian rupee banknote for a photograph in Mumbai, India. (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 Securities Report

Unsuccessful auto-debit requests (bounce rate) in terms of value on National Automated Clearing House platform have fallen ~3% to 26.8% as against the average 30% for April-June 2021.

It is better than March 2020/March 2021 average of ~27.5% but still couple of percentage points higher than pre-Covid-19 average of 24-25% suggesting signs of normalisation in bounce rate in coming months.

Similarly, unsuccessful auto-debit requests (bounce rate) in terms of volume have also improved to 33.0% versus April-June 2021 average of 35.5%, 33-34% in March 2020/March 2021 and ~31% average pre-Covid-19.

Market feedback and collection efficiency reported by a few lenders suggest normalisation kicking in with improvement in collection efficiency from mid-June once there was easing of restrictions/lockdowns.

Click on the attachment to read the full report:

ICICI Securities BFSI Sector Update.pdf

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