Q1 earnings preview: How much pain will the banks cause this time?

The banking sector is likely to show easing of asset quality pressure in June quarter numbers compared with the numbers for the sequential quarter ended March 2018. However, bottom lines are likely to remain muted for both PSU lenders as well as corporate private banks. ICICIdirect.com expects gross non-performing assets (GNPA) of lenders under its coverage to increase 21 per cent year-on-year to Rs 3,36,134 crore against a 30 per cent traction witnessed in the previous quarter. The high stress in Q4FY18 was on account of large-scale stress recognition done by banks on account of events like frauds during the quarter and primarily led by new NPA framework introduced by the Reserve Bank of India (RBI). Net interest margins (NIM) may show some improvement on account of lower slippages on quarter-on-quarter basis (QoQ) and increase in MCLR rates by banks. Market experts believe NII (net interest income) growth is expected to be healthy at around 14 per cent YoY to Rs 47,938 crore against 5 per cent YoY seen in the previous quarter. Private lenders may post NII growth of around 19.3 per cent YoY. Despite easing of NPA pain, credit cost i.e. provisioning expenses, is estimated to stay high… Read full this story

• A pause or a top? Experts are split on where the S&P 500 is headed next as earnings kick off
• Trade war pause, retail sales, bank earnings – What to know in the week ahead
• INSIGHT-Realty bites: Indian property slump leaves beleaguered banks exposed
• Realty bites: Indian property slump leaves beleaguered banks exposed
• RPT-INSIGHT-Realty bites: Indian property slump leaves beleaguered banks exposed
• RPT-Wall St Week Ahead-Bruised U.S. banks expected to report Q3 earnings decline
• Banks reap $1 billion from U.S. mortgage bond trading boom
• Banks Reap $1 Billion from US Mortgage Bond Trading Boom
• Banks Reap $1 Billion From US Mortgage Bond Trading Boom
• Big Banks Were the Loudest Optimists. They’re Getting Quieter.

Q1 earnings preview: How much pain will the banks cause this time? have 302 words, post on economictimes.indiatimes.com at July 8, 2018. This is cached page on Vietnam Dance. If you want remove this page, please contact us.