Sunday, December 8, 2024
spot_img
More
    HomeTop StoriesStrong Performance Of Indian Banks To Continue: S&P Global Ratings

    Strong Performance Of Indian Banks To Continue: S&P Global Ratings


    Indian banking profitability is benefiting from higher net interest margins and lower credit costs.

    New Delhi:

    S&P Global Ratings today said Indian banking sector profitability will stabilise at a healthy level, and asset quality will continue to improve.

    “Indian banks’ earnings will likely remain healthy. The sector has improved substantially in the past seven years, from a period when many public-sector lenders were grappling with bad loans,” S&P Global Ratings credit analyst Deepali Seth Chhabria said.

    A strong recovery is underway in the Indian banking sector, and lenders have just reported their best results in a decade, S&P Global Ratings said. It expects the sector profitability to stabilise at a healthy level, and that banks’ asset quality will continue to improve.

    Indian banking profitability is benefiting from higher net interest margins and lower credit costs.

    We estimate a system-wide return on average assets (ROAA) at 1.2 per cent for fiscal 2023 (year ending March 31, 2023). System-wide ROAA will likely hover around 1.1 per cent in fiscal 2024.

    “The formation of new non-performing loans will remain at cyclical low levels, despite pressure from higher interest rates,” S&P Global Ratings credit analyst Geeta Chugh said.

    “A recovery in written-off accounts is also boosting the profitability of banks,” she added India’s strong economic performance is bolstering the banking sector.

    S&P Global Ratings still forecasts the country will grow 6-7 per cent annually until 2026 at least, making India the fastest-growing economy in Asia-Pacific, and the fastest-growing large economy globally.
     

    (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)



    Source link

    RELATED ARTICLES

    Most Popular

    Recent Comments