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.
Systematix Research Report
The banking system's Q1 FY22 performance was characterised by muted balance sheet expansion (cyclical phenomenon), with an uptick in margins led by elevated one-off non-recurring non-interest income streams.
The absence of wage revision related provisions led to lower establishment costs for state-owned banks.
Credit quality deteriorated further as mobility was restricted due to Covid-19 led sporadic lockdowns.
Officials/agents could not visit field areas for collections which led to high non performing loans in overdue accounts and also hindered NPL upgrades.
We expect additional credit restructuring in the coming quarter, leading to a rise in NPL upgrades optically.
This would minimise specific credit costs and lead to higher standard asset provisioning.
Click on the attachment to read the full report:
DISCLAIMER
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.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
