As the earnings season for the second quarter of the current financial year is set to begin, banks are expected to report another soft performance, according to a report by Axis Securities.

The brokerage firm highlighted that Q2 is likely to remain weak for the banking sector due to a combination of factors including tepid growth, net interest margin (NIM) pressures, weaker treasury performance on a sequential basis, and higher credit costs.

It stated "For banks, Q2 is expected to be another soft quarter, with tepid growth, NIM pressures".

Add Zee Business as a Preferred Source

The report noted that banks are yet to see a meaningful recovery in credit growth, which is now expected to materialize in the second half (H2) of the financial year. It stated that Q2 is likely to mark the bott

See Full Page