Strong performance of Indian banks to continue: S&P
"Indian banks' earnings will likely remain healthy. The sector has improved substantially in the past seven years, from a period when many public-sector lenders were grappling with bad loans," S&P Global Ratings credit analyst Deepali Seth Chhabria said.
S&P Global Ratings on Thursday said Indian banking sector profitability will stabilise at a healthy level, and asset quality will continue to improve.
"Indian banks' earnings will likely remain healthy. The sector has improved substantially in the past seven years, from a period when many public-sector lenders were grappling with bad loans," S&P Global Ratings credit analyst Deepali Seth Chhabria said.
A strong recovery is underway in the Indian banking sector, and lenders have just reported their best results in a decade, S&P Global Ratings said. It expects the sector profitability to stabilise at a healthy level, and that banks' asset quality will continue to improve.
Indian banking profitability is benefiting from higher net interest margins and lower credit costs.
We estimate a system-wide return on average assets (ROAA) at 1.2 per cent for fiscal 2023 (year ending March 31, 2023). System-wide ROAA will likely hover around 1.1 per cent in fiscal 2024.
"The formation of new non-performing loans will remain at cyclical low levels, despite pressure from higher interest rates," S&P Global Ratings credit analyst Geeta Chugh said.
"A recovery in written-off accounts is also boosting the profitability of banks," she added
India's strong economic performance is bolstering the banking sector.
S&P Global Ratings still forecasts the country will grow 6-7 per cent annually until 2026 at least, making India the fastest-growing economy in Asia-Pacific, and the fastest-growing large economy globally.
Catch the latest stock market updates here. For more news on sports, politics follow Zee Business
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
PM Modi has invested in this post office scheme; know his total worth as per Lok Sabha elections 2024 affidavit
SRH vs GT IPL 2024 Ticket Booking Online: Where and how to buy SRH vs GT tickets online - Check IPL Match 66 ticket price, other details
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
TBO Tek IPO Listing LIVE Update: Bumper Debut! Share list at 55% premium - Buy, sell or hold? Check Anil Singhvi's view
05:22 PM IST