SBI, HDFC Bank, ICICI Bank: What Sharekhan said about tailwinds | Explained - Key risks, preferred picks
Q3 FY2021 will be another quarter where the banking and financial sectors will be influenced by regulatory and environmental factors. However, strong pickup in economic activity and encouraging collection efficiencies indicate improving outlook; earlier fears of NPLs at significantly elevated levels (once recognition is allowed) have been abated. Even though overall credit growth has been weak on system levels, at 5% yoy, larger and well-placed banks (such as SBI or State Bank of India, HDFC Bank, and ICICI Bank) are expected to report better advances growth, indicating market share gain.
Sharekhan expects GNPAs to show sequential improvement, but resolutions would be negligible. Sharekhan believes that the real asset-quality picture would emerge in the second half of FY2021 only: Reuters