INSUBCONTINENT EXCLUSIVE:
MUMBAI: Subdued March quarter earnings at most Indian lenders belie the prospects of accelerating profit growth in the future, with the
labelled doubtful.
Industry leaders SBI, ICICI Bank and Axis Bank improved their loan quality with significant reduction in non-performing
On the other hand, retail and corporate demand helped expand credit growth
SBI, the lender with the largest loan portfolio, saw its gross non-performing asset (GNPA) ratio fall to 7.5 per cent against 11 per cent
Indian Overseas Bank and Syndicate Bank, also reported reductions in NPA accounts.
Banks earlier faced the unsavoury prospect of seeing a
last autumn only served to increase the pressure on banks, which saw their combined exposure of about Rs 90,000 crore turn into bad loans in
subsequent quarters.
However, most banks have now finished provisioning for these loans
SBI, Axis Bank and ICICI Bank reported their all-time high Provision Coverage Ratios in the March quarter, seeking to strengthen balance
tight liquidity causing NBFCs to slow down
Banks are finding it easier to increase their retail credit market share, especially in SME and agri portfolios traditionally dominated by
Analysts also say that improved provisions and expected recoveries from multiple accounts in advanced stages of resolution in numerous
bankruptcy courts should help improve investor confidence.
