Aided by strong demand recovery, credit ratio rebounds to 1.33 in H2FY21, from 0.54 in H1FY21. GDP could grow at 11% in FY22, but the resurgence in Covid-19 cases is a key downside risk, says CRISIL.
According to a BofA Securities report, the Covid-19 shock could delay India touching the GDP of Japan by three years. In their latest estimates, it will now happen by 2031 if the economy grows at 9%.
While Indian banks' improved financial metrics do not fully reflect the impact of the Covid-19 pandemic, the under–capitalised PSBs are likely to remain risk averse and lose market share.
The increase in delinquency rates was not uniform; It was most pronounced for loans against property, home loans, and credit cards. Overall delinquencies improved for auto loans.
PE giant’s co-founder says ‘tough medicine’ needed to clean up banks’ balance sheets; government-central bank spats ‘not new’
