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Financial Services Q2 Earnings Preview - Pandemic Woes Not Behind As Yet: Prabhudas Lilladher

Financial Services Q2 Earnings Preview - Pandemic Woes Not Behind As Yet: Prabhudas Lilladher

<div class="paragraphs"><p>A cashier counts Indian one hundred-rupee banknotes at a bank branch in New Delhi. (Photographer: Prashanth Vishwanathan/Bloomberg).</p></div>
A cashier counts Indian one hundred-rupee banknotes at a bank branch in New Delhi. (Photographer: Prashanth Vishwanathan/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.

Prabhudas Lilladher Report

Absence of moratorium dispensations made the borrower stress strikingly visible during second Covid-19 wave, as delinquencies and provisions spiked across non banking financial companies.

However, economic environment has turned positive July 2021 onwards with calibrated unlocking, increased vaccination drives, receding third wave fears and Government of India relief measures.

Additionally, NBFCs have not only built liquidity and provision buffers but also witnessed rapid improvement in collections, enabling participation in credit growth cycle.

However, normalisation and full recovery in credit and credit quality is expected only in H2 FY22.

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Prabhudas Lilladher Financial Services Q2FY22 Earnings Preview.pdf

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