17 Nov 2022
- Credit growth in the industry is gradually picking up and becoming more broad-based.
- Loan segments are showing efficiency in collection trends.
- There is an improvement in credit-deposit ratios, and faster re-pricing of loans is leading to an expansion in net interest margins.
- Incremental credit costs could be lower as many private banks have up-fronted a large portion of provisioning requirements.
- Sustained growth in market share in deposits and assets
- A bounce back in economic activity with strong credit demand
- Sharper-than-expected hikes in policy rates, which could lead to higher treasury losses
- Deposit growth lagging credit growth
- A slowdown in credit demand from corporates, which could lead to lacklustre systemic credit growth
(House View aims to regularly provide readers with Kotak Mahindra Mutual Fund’s latest update on various sectors)
The views discussed here are as on end of September 2022.
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