Asset Quality Review

On the bourses, SBI share price rose as much as 1.76 per cent to an intraday high of ₹818.75 per share.

Asset quality stress in the NBFC-MFI sector surged in 2024-25 amid borrower overleveraging as well as operational challenges, and the pressure is expected to persist in first half of the current fiscal, a report said. ICRA's July 2025 analysis on the Non-Banking Financial Company - Microfinance Institution (NBFC-MFI) said that the AUM of the sector declined 12 per cent in FY2025. However, the rating agency said it anticipates growth to resume in FY2026 to 10-15 per cent. As per the report, asset quality stress surged in FY25 largely due to borrower overleveraging, sociopolitical disruptions, and operational challenges. ICRA has a negative outlook on the sector, given the lingering asset quality stress and subdued profitability. Overall stress in FY2025 surged to 15.3 per cent vis--vis opening stressed pool of 5.9 per cent as of March 2024 on account of significant deterioration in asset quality in the microfinance sector, the report said. Given the deterioration in asset quality,

Despite private banks performing strongly in 2025 so far, the last three months have seen a sharp reversal, with PSU banks taking the lead.

Quality funds tend to be less volatile and offer downside protection and often perform better in a bear market due to the stable earnings

Union Bank of India posted a 50.57 per cent rise in Q4FY25 net profit to Rs 4,984 crore, aided by an 18.1 per cent growth in non-interest income and improved asset quality

Lower interest rates, robust economic conditions to bolster near-term asset quality

UCO Bank shares jumped after the company reported healthy Q2FY25 results. The bank's net profit jumped 50 per cent year-on-year (Y-o-Y) to Rs 602.7 cr in Q2FY25, from Rs 401.7 crore in Q2FY24

The fall in the share price of Suryoday SFB was triggered by weak asset quality in the September quarter (Q2FY25).

The asset quality of government-owned NBFCs and non-government-owned middle layer NBFCs focused on the retail line of business was also higher

Heat wave, Lok Sabha polls hit collections, asset quality in Q1

CLSA expects private sector banks, which have been stock market laggards over the past few months, to give better returns ahead, given a good business outlook and inexpensive valuations

Worries about the impact of relatively lower capital adequacy levels, comfort of loan mix due to presence of unsecured loans, and NIM contraction cycle have been weighing on the stock

During the period under review, the bank's total income rose 19 per cent to Rs 6,941.5 crore compared to Rs 5,854 crore during the same quarter last fiscal

Poonawalla Fincorp on Friday reported a 77 per cent on-year jump in net income at Rs 230 crore for the September quarter driven by record loan sales and an improvement in asset quality. The Cyrus Poonawalla group company said this is the highest ever quarterly profit, which came on the back of the highest-ever quarterly disbursement that jumped 151 per cent to Rs 7,807 crore, taking the overall loan book to Rs 20,215 crore, which recorded a 54 per cent on-year growth. The record profit is driven by record loan sales and improvement in asset quality. Net bad loans declined to 0.72 per cent and there was a 106 bps rise in the key net interest margin to 11.42 per cent, the managing director Abhay Bhutada said in a statement. The gross Non-Performing Assets (NPAs) declined by 41 bps to 1.36 per cent, net NPAs improved by 22 bps to 0.72 per cent, the company said. The net interest margin jumped to 11.42 per cent, gaining 106 bps over the trailing 12 months period, leading to better ...

Board recommends dividend of Rs 8.60 per equity share, clears plan to raise equity capital

Last week, reports claimed that the Reserve Bank of India has raised concerns about the rapid rise in advances at AU Small Finance Bank

The asset quality of Indian banks and those in Southeast Asian countries will be stable in 2023, said Moody's Investors Service in its latest report on the banking sector in emerging markets

Rating agency warns capital base of PSBs may come under greater strain

Listing day gains come despite lukewarm response to IPO

Strong loan growth, rising lending rates give the boost