Team Blitz India
NEW DELHI: Indian banks’ profits will rise next year due to lower provisioning expenses and robust growth in retail segments, said a report by Moody’s Investors Service on December 6.
“In Asia Pacific, banks’ profitability is expected to stabilise as they recover from the impact of the coronavirus and their net interest margin remains steady,” said the report. Stability is supported by central banks pausing rate hikes and maintaining stable provisioning expenses.
Chinese banks, however, may face challenges as they grapple with further contraction due to loan repricing following recent policy easing. The broader economic landscape in Asia Pacific is marked by concerns over China’s economy slowing down due to muted domestic demand, weak exports, and corrections in the property market. China’s slowdown could have widespread consequences for the entire region.