 "Analysts at Motilal Oswal Financial Services, for instance, expect most PSBs to see muted profit growth for banks")
Earnings expectations for the recently concluded quarter (Q2FY21) continue to be uncertain for public sector banks (PSBs). While analysts agree that the credit growth could be sluggish, coupled with delayed bad loan resolutions, the quantum varies across the board.
Analysts at Motilal Oswal Financial Services, for instance, expect most PSBs to see muted profit growth for banks under their coverage impacted by sluggish loan growth, higher proportion of MSME/SME loans, and delay in resolution of stressed accounts. Consequently, the brokerage sees the net profit declining 16 per cent year-on-year (YoY) for the sector. State Bank of India (SBI), however, remains
