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Top banks' asset quality pains are easing, show July-September earnings

Results of SBI, ICICI Bank and Axis Bank indicate respite in formation of fresh bad loans; resolution and recoveries will be important for the trend to sustain

bank, bank employees, cash counter
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Asset quality aside, the other important point to note is sharp growth in retail assets. For SBI and ICICI Bank, retail loans form over 60 per cent of total loan book.

Hamsini Karthik
A common thread running through the results of India's top banks that announced their July-September quarter (Q2) results in the past week — these lenders had seen bad-loan issues in the past — is clearly that of an improving asset quality.

While Axis Bank’s numbers gave some cue, State Bank of India (SBI) and ICICI Bank cemented the trend. ICICI Bank particularly deserves a mention, given that its net non-performing assets (NPA) or bad loan ratio, at 1.6 per cent, is inching lower towards pre-asset quality review (pre-AQR) days. The interesting part is that slippages or formation of new bad

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First Published: Oct 28 2019 | 6:36 PM IST

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