The Banking, financial services and insurance (BFSI has outperformed in Q3FY22, with increased loan growth and disbursements and asset quality and recovery and upgrades as per brokerage Motilal Oswal’s report.
The third quarter has witnessed steady growth, largely driven by the BFSI sector, Oil and Gas, and Technology sectors. IT services sector saw another quarter of strong revenue growth. The report covers quarterly results of public sector banks, private sectors banks, and NBFC’s and has referred to these three sectors as BFSI.
Banks with most postings a decline in their non-performing loan (NPL) ratios has seen rigorous improvement in asset quality. This is mainly due to controlled slippages and improved recovery and upgrades, resulting in a 40-100 basis points improvement in gross non-performing asset (GNPA) ratios.
Private Banks are also said to be reported a higher-than-estimated profit after tax (PAT) growth. Public sector banks witnessed a healthy loan growth of 3-7% compared with the previous quarter due to across-the-board margin improvement.
