Q4 results preview: Quick economic recovery to aid banks' profits

Lenders, including non-banking finance companies (NBFCs), are proving to be one of the strongest anchors of March quarter (Q4FY21) earnings. Aided by last year’s low base, better-than-expected economic recovery, and prudent provisioning in the first nine months of 2020-21 (9MFY21), net profit, on average, analysts estimate a sharp surge while loan book may expand in the high single digits. However, headwinds in terms of mark-to-market losses from rising bond yields and likely increase in slippages may restrict bottom line.    “In Q4, average bank credit growth.....

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