Sector watch: Are banks looking at a stable June 2019 quarter?

Experts see stability to return to the liquidity-crisis hit sector, but caution that the financial sector is not completely out of the woods yet

The fallout of one of the biggest non-banking financial companies (NBFCs), Infrastructure Leasing & Financial Services (IL&FS), soaked up liquidity from the system. Consequently, consumption - gauged by dipping auto sales, and low real-estate prices – led to a crippled economy over the past few months. Thereafter, developments at Dewan Housing Finance Corporation (DHFL), insolvency of Jet Airways and spat of bank frauds snowballed the liquidity crisis and shook investors’ confidence.

As the markets prepare for big players in the banking and financial services sector set to declare their April-June quarter numbers for the 2019-20 fiscal year (Q1FY20) this week