The banking sector is now clearly moving past vulnerabilities. After a phase of sharp increases in gross non-performing assets, plummeting profits, and lull in credit growth, revival is in the air.
Majority of the stress in the corporate loan book is recognised. Substantial capital raising and higher provisioning levels have resulted in stronger, cleaner balance sheets. Retail segment performance is also holding up.
Though the small and medium enterprise and restructured portfolios bear some watching, they are unlikely to make a material difference to the big picture.
With the overall asset quality of banks on an improving trajectory, banks are now shifting priorities to address credit demand. But will deposit growth keep pace with credit growth? And will banks have to go for more equity raising to fund growth and maintain capital buffers?
To discuss these and other sectoral nuances, CRISIL Ratings is organising a webinar titled, 'Banking on a new note,' on September 22, 2022, at 2:30 pm, where its experts will make a presentation on:
Growth and asset quality outlook
Trends in pre-provisioning profits and overall earnings
Medium-term capital requirements
This will be followed by a panel discussion with industry experts and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
