Financials - Recovery In Credit Growth To Go On; Net Interest Margin To Exhibit A Positive Bias: Motilal Oswal
The credit profile of banks across the industry has been stable, with an improvement across most parameters.
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Motilal Oswal Report
CRISIL Ratings hosted a webinar titled, ‘Banking on a new note’ to discuss growth and asset quality outlook, trends in overall earnings, and capital requirements. The webinar was followed by a panel discussion with the managements of various banks. Here are the key takeaways:
After undergoing an elevated period of balance sheet fortification, the focus is now shifting towards expansion of credit growth. The credit profile of banks across the industry has been stable, with an improvement across most parameters.
While credit growth in the past few years has been largely driven by retail, the same for the corporate segment is seeing healthy signs of a pickup. Corporate credit is largely driven by working capital requirements as private capex is still a few quarters away.
While corporate credit will pick-up gradually, the retail and micro, small and medium enterprise segment will remain the key growth driver. Home and unsecured loans will continue to keep retail growth healthy.
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