Indian Banks have worst experience in Q1 of the year 2020
The current scenario of the banking sector is not in favour of most of the banking institutions in India. The first quarter of the year 2020 has witnessed a tremendous decline in the profit of the banks.
The Reserve Bank of India has already announced that the gross non performing asset (GNPA) ratio may increase in one year time frame from 8.5 percent in March 2020 to 12.5 percent in March 2021. According to RBI the public sector banks will get worse experience of NPA compare to foreign and private banks. This will not only affect the credit creation capacity of banks but also discourage the banks to finance newly startups.
The brokerage house HDFC Securities has released their earnings estimates for BFSI sector for Q1 of the year 2020. According to the estimates the Q1 net profit for DCB Bank, RBL Bank and Indusind Bank may decline by 10.5 percent, 57 percent and 78.9 percent Year-on-Year respectively. Despite this negative news there are also some positive news for the banks like Kotak Mahindra Bank, ICICI Bank and State Bank of India (SBI), expected to report seen up in their Q1 profit by 1 percent, 51.8 percent and 43.9 percent Year-on-Year respectively.
For More Amazing Updates
Follow us on Instagram – https://www.instagram.com/stocktryofficial/