Asset Quality Review

The asset quality of Indian banks and those in Southeast Asian countries will be stable in 2023, said Moody's Investors Service in its latest report on the banking sector in emerging markets

Rating agency warns capital base of PSBs may come under greater strain

Listing day gains come despite lukewarm response to IPO

Strong loan growth, rising lending rates give the boost

Earnings, asset quality profile improve for public sector lender

PNB's total income during July-September 2022 was Rs 23,001.3 crore as against Rs 21,262.3 crore a year ago

Its net interest income (NII) expanded by 29 per cent YoY to Rs 649 crore in the reporting quarter.

Impairment losses and bad debts declined 8 per cent YoY to Rs 546 crore but was up 21 per cent sequentially.

The bank's gross non-performing assets (NPAs) and net NPAs were 4.4% and 1.3%, respectively, at the end of the March quarter, with a provision coverage ratio of 70.4%

Fitch Ratings on Friday said the rising COVID cases may delay recovery in MSME and microfinance lending, and add to asset quality risks of non-banking financial institutions.

The bad loans saw a dip in Q2, both in absolute and percentage terms. The trend is likely to prevail in Q3

"An increase in bond yields would impact treasury performance," Motilal Oswal Securities said.

The GNPA ratio of PSBs, which was 8.8 per cent in September this year, may deteriorate to 10.5 per cent by September 2022 under the baseline scenario

The pandemic posed significant challenges to NBFCs during the first wave (2020) also

'The RBI has started normalising its extraordinary injection of liquidity in a calibrated manner', said Chaudhry

Small ticket personal loans segment has witnessed a huge surge in asset quality stress for lenders in the pandemic-affected FY21, with NBFCs taking the maximum brunt

The current level of NPAs masks the actual pain due to restructuring done under regulatory packages, both in 2020 and this year

The management clarified on the recent exits in the bank, including on the resignation of internal audit head, Sumit Dhir, saying he resigned following personal reasons

Coronavirus outbreaks triggering strict containment steps will impede economic recovery and erode borrowers' debt repayment capacity, increasing their asset risks, says agency

Asset quality improved with GNPA at 3.91 per cent versus 4.99 per cent QoQ while RBI RE book was down from 8 per cent to 6 per cent, sequentially