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This Article is From Sep 04, 2021

Private Banks - Spread Performance Improves In July: Systematix

Private Banks - Spread Performance Improves In July: Systematix
Indian rupee banknotes are counted. (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

During July 2021, the banking system's fresh loan lending rate witnessed an uptick while the weighted average term deposit rate declined.

Banks' outstanding loans lending rate remained stable.

The sectoral credit deployment data for the month indicates some building-up of credit risk by banks - reflected in the rise in fresh loan lending rates on a month-on-month basis especially for private banks.

Our estimation of spreads on various benchmarks reveals that private banks performed better than public sector banks despite having a higher proportion of loans linked to the external benchmark linked lending rate.

Click on the attachment to read the full report:

Systematix Banking Sector Update.pdf
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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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