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This Article is From Oct 04, 2021

Indian Banking Sector - Private Banks Witness Improvement In Spreads In August: Systematix

Indian Banking Sector - Private Banks Witness Improvement In Spreads In August: Systematix
Indian two thousand rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

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

In August 2021 and Q2 FY22, the domestic banking industry witnessed a 6 basis points and 25 bps rise, respectively, in the weighted average fresh loan lending rates.

On outstanding loans, the weighted average lending rate moderated by 1 bps and the weighted average term deposit rate declined by 7 bps in Q2 FY22.

Divergence in fresh loans and outstanding loans WALR trajectories in Q2 FY22 could be due to sizable write-off of high-yielding loans.

In Q2 FY22, private sector banks witnessed a sharp 54 bps rise in their fresh loans WALR to 8.83%; their outstanding loans WALR was largely flat at 9.92% while WADTDR contracted by 6 bps to 5.33%.

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.

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