Top 5 Private Sector Banks With Highest Interest Rates On Savings Accounts

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DCB Bank

DCB Bank’s resident, NRE, and NRO Savings Bank Account interest rates are listed below (with effect from October 1, 2021).

Balance Range (INR) Rate of Interest p.a. W.E.F October 1, 2021
On balances up to 1 lakh in the account 2.75%
On balances above 1 lakh to less than 25 lakh in the account 5.00%
On balances from 25 lakh to less than 50 lakh in the account 6.00%
On balances from 50 lakh to less than 2 crore in the account 6.50%
On balances from 2 crore to less than 50 crore in the account 5.50%
On balances from 50 crore and above 5.00%
Source: Bank Website

RBL Bank

RBL Bank

Below are the interest rates on savings deposits including NRE/NRO Savings of RBL Bank which are in force from September 01, 2021.

Daily balance Rate of Interest (p.a.)
Upto Rs. 1 lakh 4.25%
Above Rs. 1 lakh upto Rs. 10 lakh 5.75%
Above Rs. 10 lakh and upto Rs. 3 Crore 6.00%
Above Rs. 3 Crore upto Rs. 5 Crore 6.00%
Source: Bank Website

Bandhan Bank

Bandhan Bank

Bandhan Bank’s Domestic / Non-Resident Rupee Savings Deposit interest rates, effective from November 1, 2021, are listed below.

Daily balance In Rs Rate p.a
Daily Balance up to 1 lakh 3.00%
Daily Balance above 1 lakh to 10 lakh 5.00%
Daily Balance above 10 lakh to 2 crore 6.00%
Daily Balance above 2 crore to 10 crore 5.00%
Source: Bank Website

Yes Bank

Yes Bank

With the introduction from May 13, 2021, the interest rates on savings accounts of Yes Bank for resident and non-resident customers are stated below.

Daily Balance in the Savings Account (INR) Applicable Interest Rates (p.a.)
4%
>1 Lac to 4.50%
>=10 lacs to 5.25%
Source: Bank Website

IDFC First Bank

IDFC First Bank

Here are the most recent interest rates on savings accounts of IDFC First Bank which are in force from 01/05/2021.

On Balances (in Rs) Rate of Interest (% p.a.)
4.00%
>1lac 4.50%
>10lac 5.00%
>2Cr 4.00%
>10Cr 3.50%
>100 Cr 3.00%
Source: Bank Website



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Buy This Engineering & Construction Company Stock For 32% Upside: ICICI Direct

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Techno Electric Q2FY22 results:

The company has logged 193 bps increase YoY in margins which came in at 31 percent, offsetting just 6.4 percent YoY revenue growth at Rs 2.7bn. Because of covid, “EPC revenue reported flat YoY growth of Rs. 2.2 billion in Q2FY22 and was below expectations. EPC margins contracted 220bps YoY to 18.3%. Energy segment booked healthy 42% YoY revenue growth to Rs481mn. The management guided for Rs12bn of revenue from EPC segment for FY22E with a

margin of 15%”, said the report.

Strong order intake outlook:

Strong order intake outlook:

In the first half of the Fy22, the company’s order book totalled to Rs. 5.7 billion. The company’s order book is seen to expand going forward in H2FY22 and the management forecasts for order intake worth Rs. 20 billion, of which Rs. 12 billion order will be by FGD, Rs5 billion from transmission and Rs.2 billion from

smart meters.

Rationale for a ‘Buy' on Techno Electric:

Rationale for a ‘Buy’ on Techno Electric:

ICICI Direct maintains BUY on the scrip of Techno Electric on healthy cashflow with cash and equivalents of Rs.8 billion, and benign valuation. “Despite challenges, the company is confident of maintaining margins at 15%. Given healthy growth outlook

and cashflow, we maintain BUY with revised SoTP-based target price of Rs332. We believe the foray into data centre business will be positive in the long run as it gives an avenue to utilise the wind power efficiently and provides the company a foothold in a promising growth segment. Using the SoTP methodology, we value the standalone EPC business at Rs211 (20x FY23E earnings), discounted cashflow from wind

assets at Rs.44, transmission assets at Rs.10 per share and cash and equivalents at Rs. 66 per share”, says the brokerage.

Disclaimer:

Disclaimer:

The stock has been picked from the brokerage report of ICICI Direct. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.



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Reserve Bank of India – Press Releases

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The Banking Regulation Act, 1949 (BR Act, 1949) was amended by the Banking Regulation (Amendment) Act, 2020 (Act 39 of 2020) which came into force on September 29, 2020. Accordingly, co-operative societies cannot use the words “bank”, “banker” or “banking” as part of their names, except as permitted under the provisions of BR Act, 1949 or by the Reserve Bank of India (RBI).

It has come to the notice of RBI that some Co-operative Societies are using the word “Bank” in their names in violation of Section 7 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) (the BR Act, 1949).

It has also come to the notice of RBI that some Co-operative societies are accepting deposits from non-members/ nominal members/ associate members which tantamount to conducting banking business in violation of the provisions of the BR Act, 1949.

Members of the public are hereby informed that such societies have neither been issued any licence under BR Act, 1949 nor are they authorized by the RBI for doing banking business. The insurance cover from Deposit Insurance and Credit Guarantee Corporation (DICGC) is also not available for deposits placed with these societies. Members of public are advised to exercise caution and carry out due diligence of such Co-operative societies if they claim to be a bank, and look for banking license issued by RBI before dealing with them.

(Yogesh Dayal)      
Chief General Manager

Press Release: 2021-2022/1230

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Shriram City crosses 1-crore milestone in two-wheeler financing

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Shriram City Union Finance Ltd (SCUF) on Monday announced that it has crossed the milestone of one crore two-wheeler financing, coinciding with the 2021 festive season.

Two-wheeler loans currently account for about 22 per cent of the NBFC’s ₹30,000 crore assets under management.

Shriram City Union Finance posts 10% growth in Q2 net profit

YS Chakravarti, MD & CEO, SCUF, said: “The festive cheer, pent-up demand, and a good monsoon have aided rural demand. At Shriram City, our goal is to help consumers earn a livelihood, with 65 per cent of our borrowers being self-employed and using the two-wheeler as part of their business.”

Impact of pandemic

The company, in a statement, noted that it financed the first 50 lakh two-wheelers over 15 years, beginning 2002, whereas the next 50 lakh customers were added in under four years.

No festive cheer for two-wheeler industry

The statement underscored that 2021 saw two-wheelers gain momentum as a mode of transport, with the need for mobility gaining importance amid the Covid pandemic. The demand for two-wheelers has been the highest when compared to other motorised modes, it added.

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Some Chinese banks told to issue more loans for property projects

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BEIJING, – Some Chinese banks have been told by financial regulators to issue more loans to property firms for project development, two banking sources with direct knowledge of the situation told Reuters on Monday, in efforts to marginally ease liquidity strains across the industry.

Chinese authorities have yet to publicly give any signal that they will relax the “three red lines” – financial requirements introduced by the central bank last year that developers must meet to get new bank loans.

But lenders have recently adjusted their lending practices to reflect the latest central bank guidance of “meeting the normal financing needs” of the sector.

The marginal relaxation of loan policies to developers will still stick to the major principle that “homes are for living in, not for speculation,” said the sources, one from a city commercial bank and the other from a big bank, who received the guidance from regulators.

Financial regulators have told the banks to specifically accelerate approval of loans to develop projects, and to ensure that outstanding loans to project development show positive growth in their loan books in November compared with October, the two sources said.

Both sources declined to be named due to the sensitivity of the matter.

The People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) did not immediately respond to requests for comment.

As of end-September, banks’ outstanding loans to project development stood at 12.16 trillion yuan ($1.91 trillion), up by 0.02% from a year earlier, central bank data showed.

Quarterly growth of this loan type slowed further from the second quarter by 2.8 percentage points, the data showed.

The real estate sub-index of the Chinese mainland’s blue chip index jumped nearly 5% on Friday following market rumours about potential relaxation of property loans.

The sub-index ended down 4% on Monday.

China will stand firm on policies https://www.reuters.com/business/china-property-financing-tweaks-fall-short-investor-expectations-2021-11-11 to curb excess borrowing by property developers even as it makes financial tweaks to help home buyers and meet reasonable demand, bankers told Reuters previously.

Some banks have accelerated disbursement of approved home loans in some cities, the bankers said.

Last month, central bank official Zou Lan said there had been “misunderstanding” among lenders about the PBOC’s debt-control policies, causing financial strains for some developers.

“Banks should have supported new projects reasonably after (developers) have repaid existing loans,” Zou said. ($1 = 6.3819 Chinese yuan) (Reporting by Xiangming Hou, Kevin Huang and Ryan Woo; Writing by Cheng Leng; Additional reporting by Jason Xue; Editing by Jacqueline Wong)



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Reserve Bank of India – Press Releases

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(Amount in ₹ crore, Rate in Per cent)
  Volume
(One Leg)		 Weighted
Average Rate 		Range
A. Overnight Segment (I+II+III+IV) 0.00 – –
     I. Call Money 0.00 – –
     II. Triparty Repo 0.00 – –
     III. Market Repo 0.00 – –
     IV. Repo in Corporate Bond 0.00 – –
B. Term Segment      
     I. Notice Money** 0.00 – –
     II. Term Money@@ 0.00 – –
     III. Triparty Repo 0.00 – –
     IV. Market Repo 0.00 – –
     V. Repo in Corporate Bond 0.00 – –
  Auction Date Tenor (Days) Maturity Date Amount Current Rate /
Cut off Rate
C. Liquidity Adjustment Facility (LAF) & Marginal Standing Facility (MSF)
I. Today’s Operations
1. Fixed Rate          
     (i) Repo          
    (ii) Reverse Repo Sun, 21/11/2021 1 Mon, 22/11/2021 1,898.00 3.35
    (iii) Special Reverse Repo~          
    (iv) Special Reverse Repoψ          
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo          
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo          
3. MSF Sun, 21/11/2021 1 Mon, 22/11/2021 25.00 4.25
4. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£          
5. Net liquidity injected from today’s operations
[injection (+)/absorption (-)]*		       -1,873.00  
II. Outstanding Operations
1. Fixed Rate          
    (i) Repo          
    (ii) Reverse Repo Sat, 20/11/2021 2 Mon, 22/11/2021 15,620.00 3.35
  Fri, 19/11/2021 3 Mon, 22/11/2021 46,619.00 3.35
  Thu, 18/11/2021 4 Mon, 22/11/2021 97,803.00 3.35
    (iii) Special Reverse Repo~          
    (iv) Special Reverse Repoψ          
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo Thu, 18/11/2021 15 Fri, 03/12/2021 445,742.00 3.99
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo Tue, 16/11/2021 7 Tue, 23/11/2021 200,010.00 3.94
  Tue, 02/11/2021 28 Tue, 30/11/2021 50,007.00 3.97
3. MSF Sat, 20/11/2021 2 Mon, 22/11/2021 68.00 4.25
  Fri, 19/11/2021 3 Mon, 22/11/2021 7,201.00 4.25
  Thu, 18/11/2021 4 Mon, 22/11/2021 1,215.00 4.25
4. Long-Term Repo Operations# Mon, 17/02/2020 1095 Thu, 16/02/2023 499.00 5.15
  Mon, 02/03/2020 1094 Wed, 01/03/2023 253.00 5.15
  Mon, 09/03/2020 1093 Tue, 07/03/2023 484.00 5.15
  Wed, 18/03/2020 1094 Fri, 17/03/2023 294.00 5.15
5. Targeted Long Term Repo Operations^ Fri, 27/03/2020 1092 Fri, 24/03/2023 12,236.00 4.40
  Fri, 03/04/2020 1095 Mon, 03/04/2023 16,925.00 4.40
  Thu, 09/04/2020 1093 Fri, 07/04/2023 18,042.00 4.40
  Fri, 17/04/2020 1091 Thu, 13/04/2023 20,399.00 4.40
6. Targeted Long Term Repo Operations 2.0^ Thu, 23/04/2020 1093 Fri, 21/04/2023 7,950.00 4.40
7. On Tap Targeted Long Term Repo Operations€ Mon, 22/03/2021 1095 Thu, 21/03/2024 5,000.00 4.00
  Mon, 14/06/2021 1096 Fri, 14/06/2024 320.00 4.00
  Mon, 30/08/2021 1095 Thu, 29/08/2024 50.00 4.00
  Mon, 13/09/2021 1095 Thu, 12/09/2024 200.00 4.00
  Mon, 27/09/2021 1095 Thu, 26/09/2024 600.00 4.00
  Mon, 04/10/2021 1095 Thu, 03/10/2024 350.00 4.00
  Mon, 15/11/2021 1095 Thu, 14/11/2024 250.00 4.00
8. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£ Mon, 17/05/2021 1095 Thu, 16/05/2024 400.00 4.00
Tue, 15/06/2021 1095 Fri, 14/06/2024 490.00 4.00
Thu, 15/07/2021 1093 Fri, 12/07/2024 750.00 4.00
Tue, 17/08/2021 1095 Fri, 16/08/2024 250.00 4.00
Wed, 15/09/2021 1094 Fri, 13/09/2024 150.00 4.00
Mon, 15/11/2021 1095 Thu, 14/11/2024 105.00 4.00
D. Standing Liquidity Facility (SLF) Availed from RBI$       24,195.80  
E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     -737,124.2  
F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     -738,997.2  
G. Cash Reserves Position of Scheduled Commercial Banks
     (i) Cash balances with RBI as on 21/11/2021 648,849.24  
     (ii) Average daily cash reserve requirement for the fortnight ending 03/12/2021 650,308.00  
H. Government of India Surplus Cash Balance Reckoned for Auction as on¥ 18/11/2021 0.00  
I. Net durable liquidity [surplus (+)/deficit (-)] as on 05/11/2021 1,123,716.00  
@ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
– Not Applicable / No Transaction.
** Relates to uncollateralized transactions of 2 to 14 days tenor.
@@ Relates to uncollateralized transactions of 15 days to one year tenor.
$ Includes refinance facilities extended by RBI.
& As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
* Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo.
# As per the Press Release No. 2020-2021/287 dated September 04, 2020.
^ As per the Press Release No. 2020-2021/605 dated November 06, 2020.
€ As per the Press Release No. 2020-2021/520 dated October 21, 2020, Press Release No. 2020-2021/763 dated December 11, 2020, Press Release No. 2020-2021/1057 dated February 05, 2021 and Press Release No. 2021-2022/695 dated August 13, 2021.
¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
£ As per the Press Release No. 2021-2022/181 dated May 07, 2021 and Press Release No. 2021-2022/1023 dated October 11, 2021.
~ As per the Press Release No. 2021-2022/177 dated May 07, 2021.
ψ As per the Press Release No. 2021-2022/323 dated June 04, 2021.
Ajit Prasad            
Director (Communications)
Press Release: 2021-2022/1229

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Poonawalla Fincorp, CARS24 in strategic pact for consumer financing

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Poonawalla Fincorp and CARS24 on Monday announced their strategic partnership for quick and seamless consumer financing on vehicles bought from CARS24.

CARS24 raises $450 million funding in Series F round

“In this partnership, Poonawalla Fincorp will fulfil consumer loans originating through CARS24. Additionally, both parties will partake in the risk and rewards,” they said in a statement.

‘Huge market opportunity’

Vijay Deshwal, Group Chief Executive officer, Poonawalla Fincorp Ltd, said, “With technology at its core, we at Poonawalla Fincorp aim to create a digitally-enabled consumer lending platform and this partnership with CARS24 is a step in that direction. We are optimistic that this will be a great partnership and will provide hassle-free experience to customers in fulfilling their dream of owning a car.”

Cars24 eyes 20% share of the used car market in 5 years

Ruchit Agarwal, Co-founder and CFO, CARS24, said, “With only 20 per cent consumer financing penetration in the used cars industry, we feel that there is a huge market opportunity waiting to be tapped.”

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Motilal Oswal Recommends To ‘Buy’ This Healthcare Stock For +43% Returns, In 1 Year

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Target Price

The Current Market Price (CMP) of Laurus Labs is Rs. 482. The brokerage firm, Motilal Oswal has estimated a Target Price for the stock at Rs. 690. Hence the stock is expected to give a 15% return, in a Target Period of 1 year.

Stock Outlook
Current Market Price (CMP) Rs. 482
Target Price Rs. 690
1 year return 43.00%

Company performance

Company performance

Additionally, Laurus Labs (LAURUS) has agreed to acquire a 26.6% stake in ImmunoACT for a consideration of Rs. 460m, implying an enterprise value of Rs. 1.7b. ImmunoACT currently has four CAR-T cell molecules, with one of them undergoing clinical trials. CAR-T cell is a new therapy for Leukemia/Lymphoma, with USD 1.5b in worldwide sales of five commercialized products. The brokerage firm mentioned, “Given that ImmunoACT products are under development, the commercialization would be subject to a successful clinical outcome. However, this represents LAURUS’ entry for a potential CDMO opportunity into a new therapy space over the next 4-5 years.”

Comments by Motilal Oswal

Comments by Motilal Oswal

Motilal Oswal maintained BUY rating for the stock and said, “We remain positive on LAURUS on the back of a scale-up in CDMO (Synthesis/Biologics), market share gains in the Non-ARV segment, and growth potential in the Non-ARV business. We continue to value LAURUS at 24x 12M forward earnings to arrive at a Target Price of Rs. 690.”

About the company

About the company

Laurus Labs develops innovative medicines, and they work with the top 10 generic pharmaceutical companies globally. They sell APIs in 56 countries, while their major focus areas include anti-retroviral, Hepatitis C, and Oncology drugs. The company undertakes dedicated R&D in areas that have significant growth potential.

Disclaimer

Disclaimer

The above stock was picked from the brokerage report of Motilal Oswal. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.



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“BUY” This Small Cap FMCG Stock For A Gain of 51% In 6 Months: HDFC Securities

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Q1FY22 results of GSL

HDFC Securities has said in its research report that “GSL, in Q1FY22, reported net revenue growth of 61% to Rs 371 Cr backed by an increase in the share of Rajasthan Medium Liquor (RML) in the Consumer Business segment and higher sales volume of 29.9 Mn liters in Bulk Alcohol Segment. EBITDA Margin grew for the 6th consecutive quarter and stood at a record high of 26.5% – up 940/183 bps YoY/QoQ in Q1FY22 on account of higher RML share in Consumer Business and better realizations. Bulk Alcohol sales volumes stood at 29.9 Mn litre in Q1FY22, up 45% YoY and 5% QoQ. The average realization for bulk alcohol came in at Rs. 51.6 per litre in Q1FY22. The share of Consumer Business grew to 42% in Q1FY22 from ~35% in Q1FY21, on the back of both volume and value growth.”

The company’s “Value Segment sales volumes grew by 65% YoY to 3.3 Mn cases and realisations by 16% YoY and 10% QoQ to Rs 462.5 per case in Q1FY22. Despite the 2nd wave of Covid-19, the Capacity Utilization in Q1FY22 stood at 98% (vs 58% in Q1FY21 and 99% in Q4FY21). On the expansion front, in West Bengal, expansion work of an additional 140 KLPD is nearing completion and likely to be commissioned in Q3FY22. In Jharkhand, work has commenced on a planned expansion of 140 KLPD and the project is expected to be commissioned in FY23. Additional 140 KLPD expansion is under evaluation between Bihar and another location; work expected to start later in FY22” said the brokerage.

Buy Globus Spirits Limited (GSL) with a target price of Rs. 1761

Buy Globus Spirits Limited (GSL) with a target price of Rs. 1761

The brokerage has said that the company’s “Net revenues/ EBITDA/ PAT have grown at a CAGR of 15%/40%/94% over the last 5 years with EBITDA/PAT margin expanding from 9.5%/1.4% to 20.7%/11.4%. In fact the company has reported EBITDA margin expansion over the past 6 consecutive quarters, with it reaching a high of 26.5% in Q1FY22. Stable working capital, lower cash outlay for tax due to availability of MAT credit and a reduction in interest cost led CFO to improve to Rs 148.4 Cr in FY21 from Rs. 30.6 Cr in FY19. The company strengthened its balance sheet by reducing the debt of Rs. 75 Cr despite ongoing CAPEX. Robust cash flow generation will further aid debt reduction.”

HDFC Securities claims that “Going ahead, we expect GSL’s Net Revenues/EBITDA/ PAT to witness a strong CAGR growth of 21%/23%/28% over FY21-24E driven by capacity expansion in bulk alcohol and faster growth in IMIL business, led by increasing pricing gap vs. IMFL players in key states and the emergence of the ‘premium country liquor’ (medium liquor), which in our opinion is a game changer. Medium liquor realisations are ~50% higher than the value segment and offer strong growth and upgrading opportunities across the company’s key markets. While its foray in premium IMFL (highly margin accretive) through Unibev is at a nascent stage, a successful ramp-up here can drive the profitability.”

HDFC Securities has clarified in its research report that “Govt’s aim of 20% blending target by 2025 has created sheer supply-deficit of Ethanol (details inside) and has led to the diversion of ENA towards ethanol, creating structural support for ENA prices. While GSL may witness some moderation in margins (from 26.5% in Q1FY22), we expect the company to maintain 20%+ over near to mid-term, driven by higher realizations for bulk alcohol and benign input costs. Robust sales growth and improvement in profitability coupled with stable working capital is likely to aid higher cash flow generation in the coming years. We expect GSL to generate strong cumulative cash flows of ~Rs. 900 Cr to be utilised for its ongoing and future CAPEX programmes and, debt reduction.”

The brokerage has further stated that “Though the stock has rallied ~4x over the past 6 months, we believe there’s still upside to this rally, with the caveat that the Government maintains its supportive stance on ethanol blending. We think the base case fair value of the stock is Rs 1,619 (17x Sept’23E EPS) and the bull case fair value is Rs 1,761 (18.5x Sept’23E E EPS). Investors can buy the in stock Rs 1,454-1,482 band (15.5x Sept’23E EPS) and add more on dips to Rs 1,273-1,297 band (13.5x Sept’23E EPS). At LTP of Rs 1,469, it quotes at 15.4x Sept’23E EPS.”

Disclaimer

Disclaimer

The stock has been picked from the brokerage report of HDFC Securities Limited. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.



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Asset quality pains for banks ease, focus on growth likely in H2

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Asset quality pains for banks have largely eased after the second quarter and they are now likely to focus on growth, believe analysts.

A report by ICICI Securities noted that overall the quarter ended September 30, 2021 saw improvement in broad business parameters and management commentaries have been positive suggesting better traction in the second half of the fiscal.

“We believe profitability should see a boost in coming quarters with better top-line growth and lower provisions. Loan growth is to be largely driven by retail and MSME segment while corporate segment should witness gradual pick up in working capital utilisation,” it said.

Also read: NPAs of NBFCs, HFCs may rise for 3-4 quarters due to tweak in norms

Asset quality performance was better than previous quarter with less slippages and better recoveries, the report said.

Slippages were mostly at about 1- 1.4 per cent compared to 2-2.5 per cent quarter-on-quarter while gross non performing assets declined by 30 to 70 basis points, except for a few banks.

With the opening up of the economy and normalisation of business activities, most banks have reported better collection efficiencies as well as higher credit demand.

“The asset quality pain for most banks is largely behind and the focus now is on the growth acceleration. The one-off gains helped public sector banks to maintain a strong profitability; whereas the private banks’ performance was a shade better than the first quarter,” said a report by Emkay Global Financial Services.

The second quarter of the fiscal was marked by sequential moderation in stress formation, mainly led by retail, and more so for large private and public sector banks, the report said, adding that it expects non performing asset ratios to moderate due to lower slippages and higher recovery and write offs as most banks, barring a few small private banks, sit on a comfortable provision cover.

Motilal Oswal in a report also said that the asset quality outlook for public sector banks is improving gradually after a prolonged corporate NPL cycle – GNPA ratios had reached the peak of about 15 per cent in 2017-18.

A recent report by CARE Ratings had also noted that the NPA situation of the Indian banking system as represented by 23 banks – 9 PSBs and 14 private sector lenders, indicates a gradual improvement in the NPA ratio in September 2021.

The NPA ratio for these 23 banks was 6.97 per cent as on September 30, 2021 compared to 7.36 per cent as on September 30, 2020.

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