Indian banks now have the advantage over crisis-hit NBFCs, say analysts

For banks, the game will now be about resolution and not recognition of bad loans as seen in the past

For banks, one man’s loss may prove to be another’s gain. The liquidity crunch faced by the NBFC sector is expected to give banks an upper hand in terms of broad-basing their presence in the retail space and expanding their loan base. 

Analysts factor 15 -20 per cent loan growth for private banks and 8-10 per cent growth for public sector banks. However, the trend in other income could remain shaky for most of FY19. “Other income for banks will continue to suffer on moderate treasury income, keeping operating performance volatile,” says Pritesh Bumb of Prabhudas Lilladher. 

Operationally, as competition from non-banking