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
We draw the following inferences from the Reserve Bank of India's Financial Stability Report – December 2021:
Current asset quality position and stress test suggest scheduled commercial banks have emerged more robust and are generally well placed to weather credit-related shocks. Stress test for united commercial banks and non banking financial companies present a more varied picture.
Gross non-performing asset ratio of all SCBs may increase from 6.9% in September 2021 to 8.1% by Sep-2022 under the baseline scenario and further to 9.5% under severe stress.
Public sector banks' GNPA ratio of 8.8% in Sep-21 may deteriorate to 10.5% by Sep-22 under the baseline scenario.
For private banks, the share of bad loans may rise from 4.6% to 5.2%, and for foreign banks, it is estimated to increase from 3.2% to 3.9% over the same period.
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This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
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