MUMBAI : Banks are expected to report an uptick in business growth, alongside improvements in collections and asset quality in the December quarter, analysts said. “We do expect the large banks like HDFC Bank, ICICI Bank, Axis Bank among private banks and State Bank of India among public sector banks to report further improvement in business performance—operationally and outlook on business. However, we should also see an improving performance on asset quality for most mid-tier banks like IndusInd Bank, Yes Bank; small banks like DCB Bank; and most of regional banks and small finance banks," analysts at Kotak Institutional Equities said in a note on 5 January. The brokerage said it would look at the quarter from three different perspectives: asset quality, loan growth, and net interest margin (NIM). Experts cautioned that the March quarter would be challenging for asset quality given the ferocity of the third covid-19 wave.

Source: Mint January 11, 2022 17:45 UTC