Private Bank Q2 review: Top-line nos improve; Q3 may see better recoveries

The quarter gone by saw mixed results in terms of asset quality. Among key private players, only ICICI Bank and Axis Bank reported a fall in gross non-performing assets on a YoY basis

Despite weak credit growth and fewer recoveries in September quarter of FY20 (Q2FY20), private banks continue to remain analysts’ favourite. Going ahead, they expect net profits and recoveries to improve, taking cues from the recently resolved Essar Steel case.

 
All the banks listed on the Nifty Private bank index saw a cumulative year-on-year increase in profit before tax at 38.4 per cent. One-time mark down of deferred tax asset (DTA), however, led to lower profit after tax. The PAT of all the banks declined 6.18 per cent YoY. Consider this: ICICI Bank’s profit before tax (PBT) grew the highest among