Banking preview: Q3 could be a better quarter, asset quality to stay stable

Credit growth for the industry has rebounded to 14.7 per cent according to the latest RBI data, compared with nearly 12 per cent in Q2FY19 and Q2FY19.

The quarter gone by has been an eventful one for the financial services sector (BFSI). The sudden exit of the Reserve Bank of India (RBI) Governor, default by one of the largest corporate entities in India (IL&FS) bringing the eminence of the Lehman moment in the country, a subsequent sharp decline in bond yields and substantial rise in incremental capital infusion (recapitalisation of public sector banks), among other things, were important developments during the period.

Credit growth picks up momentum: Credit growth for the industry has rebounded to 14.7 per cent according to the latest RBI data, compared with