Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    DMI Finance & Ampverse Form Joint Venture to Unleash the Power of Esports in India

    May 30, 2023

    Cashfree ties-up with Tazapay to offer cross border payments to Indian exporters

    May 24, 2023

    HDFC Pension’s Assets Under Management Cross Rs. 50,000 Cr

    May 24, 2023
    Facebook Twitter Instagram
    BFSINXT
    Twitter YouTube LinkedIn
    • Banking
      • SME /Wholesale Banking
      • Retail
      • HR
        • Wholesale
      • Rural & Agri
    • NBFC
      • Customer Experience
      • Retail
      • Digital
    • Insurance
      • Life
      • General
      • InsurTech
    • Fintech
      • Payments
      • Lending
      • Wealth/PF
      • Neo-Banking
    • Policy
      • RBI
      • IRDAI
      • SEBI
      • Government
    • Financial Services
      • Securities
      • AMC
    • About us
      • Editorial Team
      • Our Advisory Panel
      • Get In Touch
    BFSINXT
    Home » FY23 Outlook: Banking Sector in Best of Health in Decades: Ind-Ra
    Banking

    FY23 Outlook: Banking Sector in Best of Health in Decades: Ind-Ra

    Key financial metrics are likely to continue to show improvement in FY23, backed by strengthened balance sheets and an improving credit demand outlook with an expected commencement of corporate capex cycle, the ratings agency said in a statement. 
    February 19, 20222 Mins ReadBy editor
    Twitter LinkedIn WhatsApp

    India Ratings and Research (Ind-Ra) on February 17 revised the outlook on the overall banking sector to improving for FY23 from stable, as the banking system’s health is at its best in decades. The improving health trend that began in FY20 is likely to continue into FY23. Furthermore, key financial metrics are likely to continue to show improvement in FY23, backed by strengthened balance sheets and an improving credit demand outlook with an expected commencement of corporate capex cycle, the ratings agency said in a statement.

    As the tightening liquidity would push up interest rates, and impacting treasure gains, it would at least partially offset in the short term as loans would get repriced faster than deposits as almost thirty three percent of the loans are linked to external benchmark rates.

    The ratings agency has marginally revised its credit growth estimates to 8.4 percent from 8.9 percent for FY22 and 10 percent for FY23. It said the growth will be supported by a pick-up in economic activity post Q1FY22, higher government spending on infrastructure and a revival in retail demand, it said.

    Ind-Ra estimates GNPA at 6.3 percent and stressed assets at 8.7 percent for FY22 and 6.1 percent and 7.6 percent respectively for FY23. Further it expects provisioning cost for FY22 at about 1.5 percent and 1 percent in FY23.

    According to the agency, most private banks have strengthened their capital buffers and proactively managed their portfolio. As growth revives, large private banks are likely to witness continuing market share gains due to their superior product and service proposition.

    Further, most old private banks will have to invest in technology further to be in the play, else they may not be able to offset the pricing benefit that large banks might offer. However, their asset quality challenges could be material, given their larger proportion of SME.

    On PSBs, the agency expects growth across sectors and benefit from loan recoveries, considering their highest profitability in the past six years. 

     

    Banking Ind-Ra
    Previous ArticleRapiPay raises USD 15 million to foray into digital banking
    Next Article IFSCA signs MoU with IIM Ahmedabad to strengthen evidence-based policy research in financial areas
    editor

    Related Posts

    AU Small Finance Bank Launches Business Cashback RuPay Credit Card

    May 8, 2023

    Cashfree Payments partners with YES BANK to offer international payment collection service to Indian exporters

    May 4, 2023

    AU Small Finance Bank receives Authorised Dealer Category-I license from RBI

    May 4, 2023

    South Indian Bank expands its product portfolio with flexible savings accounts for NRIs

    May 4, 2023

    Leave A Reply Cancel Reply

    Recent Posts

    • DMI Finance & Ampverse Form Joint Venture to Unleash the Power of Esports in India
    • Cashfree ties-up with Tazapay to offer cross border payments to Indian exporters
    • HDFC Pension’s Assets Under Management Cross Rs. 50,000 Cr
    • AU Small Finance Bank Launches Business Cashback RuPay Credit Card
    • PhonePe goes live with UPI LITE

    Recent Comments

    No comments to show.
    Demo
    NBFC's

    L&T Finance launches Warehouse Receipt Financing

    April 1, 2023

    L&T Finance adds 29 lakh customers in Micro Loans biz between April 2022 to January 2023

    March 10, 2023

    PLANET App by L&T Financial Services Crosses 1.5 Million Downloads

    January 7, 2023

    SIDBI enters Co-lending Space for Unsecured Loans to MSMEs, partners with Ambit Finvest

    December 31, 2022
    New Policy
    Policy

    GSTN gets included as a Financial Information Provider under Account Aggregator Framework

    November 23, 20220By Bfsinxt Desk

    The RBI said, with a view to facilitate cash flow-based lending to MSMEs, it has been decided to include Goods and Services Tax Network (GSTN) as a Financial Information Provider (FIP) under the Account Aggregator (AA) framework.

    RBI to run Nation-wide Finanical Services Awareness Programme in November 2022

    November 3, 2022

    RBI to soon operationalise CBDC Wholesale (e₹-W) Pilot

    November 1, 2022

    RBI launches दक्ष (DAKSH) – Reserve Bank’s Advanced Supervisory Monitoring System

    October 8, 2022
    • Twitter
    • YouTube

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    BFSINXT
    Twitter YouTube LinkedIn
    © 2023 bfsinxt.com.

    Type above and press Enter to search. Press Esc to cancel.