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Indian Banking Sector - Private Banks’ Spreads Stable, PSU Banks’ Spreads Slip Further: Systematix

Indian Banking Sector - Private Banks’ Spreads Stable, PSU Banks’ Spreads Slip Further: Systematix

<div class="paragraphs"><p>Indian rupee banknotes are counted in India. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
Indian rupee banknotes are counted in India. (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

In the prevailing business operating environment of rising short-term yields (one year Govt. generic bid yield) and reduction in credit spread (over three year AAA bond), banking system weighted average domestic term deposit rate and outstanding loans weighted average lending rate fell further in Q4 FY22 (till February 2022) over Q3 FY22.

Private banks’ calculated spreads over various benchmarks and weighted average domestic term deposit rate witnessed stability, but public sector banks’ banking group spreads have contracted.

PSBs have been witnessing moderation in their spreads in core deposit mobilisation and lending business operations.

Click on the attachment to read the full report:

Systematix Indian Banking Sector Check.pdf

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