Banks Q1 Results Preview – Focus Back On Asset Quality: Prabhudas Lilladher

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.

Prabhudas Lilladher Report

In Q1 FY22, for our coverage universe we expect, 11% YoY net interest income growth with 12% YoY for private banks and 10% for public sector banks, a slower pre provision operating profit growth of 5% YoY with similar trends in private banks and PSBs.

Limited economic activity in Q1 FY22 has kept loan growth subdued at sub 6% and deposit growth continuing to grow at 10% YoY.

A favorable base, low interest rate benefit on net interest income and relatively lower provisioning will lead to sharp earnings improvement ~65% YoY and 8% QoQ.

Collection efficiency, bounce rate and restructuring commentary should be closely watched and outlook ahead will be important.

Click on the attachment to read the full report:

Prabhudas Lilladher Banks Q1FY22 Results Preview.pdf


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