Banking And Financial Sector Update – Second Wave Impacts Growth, NPA; Revival In H2 FY22: ICICI Direct

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.

The banking sector has been slightly underperforming against the overall market in recent months (Bank Nifty up 3.4% versus the Nifty up 5.9% in the past three months) as emergence of a second wave has made markets cautious.

The pandemic has halted the gradual progress on credit growth and delayed a swift recovery by posing asset quality challenges in the near term.

However, we believe the impact of the second wave should be lower than last year (given partial/localised lockdowns).

In addition, we believe that pent up demand, rising input prices and capacity utilisation should keep retail growth unabated and boost capex led credit demand ahead.

Click on the attachment to read the full report:

ICICI Direct Banking Sector Report.pdf


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