With major names like HDFC Bank and ICICI Bank getting ready to post their third-quarter results later this week, Indian retail investors in the BFSI sector will be on the lookout for a silver lining, given the recent turbulence in overall markets marred by geopolitics and forex imbalances.
The focus would be on improvement in net interest income and a decline in Non-Performing Assets (NPAs). Market experts are of the opinion that Q3 would see marked improvement in stable asset quality and better loan growth, eventually leading to better earnings.
Apart from the big two, Saturday will see IDBI Bank, YES Bank, UCO Bank, Punjab Sind Bank, and RBL Bank post their quarterly numbers.
Federal Bank is scheduled to report its Q3 results on Friday, while South Indian Bank is expected to announce its earnings later on Thursday, January 15.
On Wednesday, Indian Overseas Bank (IOB) posted a 56.2 per cent jump in Q3 net profit of Rs 1,365 crore on a marked reduction in bad loans. The Chennai-based state-owned lender also saw its net interest income soar by 18 per cent to Rs 3,299 crore.
At December-end, Gross NPAs declined by 1.54 per cent of gross loans vs 2.55 per cent a year ago. Net NPAs or bad loans slid to 0.24 per cent vs 0.42 per cent a year ago.
Another State-run lender, the Union Bank of India, posted a 9.7 per cent rise in consolidated Q3 net profit at Rs 5,073 crore. Core net interest income inched 0.95 per cent up to Rs 9,328 crore. Gross non-performing assets ratio at Q3-end rose to 3.06 per cent vs 3.29 per cent at Q2-end.