Indian Banks Outlook 2013

[swapnil tambe]

Dear Friends,

Please find attached Report on Indian Banks Outlook 2013. Some of the points from the report highlighted below.

  

Highlights:

• Banks will remain exposed to the infrastructure sector where project delays are due to administrative and policy constraints that may take longer to resolve.
• Refinancing risk has been rising, particularly for Government banks/ PSU, as long-term loans (infrastructure, residential mortgage) have increasingly been financed by short term deposits (up to one year).
• Private banks may be impacted if rising consumer leverage were to sharply impact asset quality in the growing consumer lending business, particularly if the value of collateral were to fall.
• Capital injections under the Basel III regime will help improve the quality of capital in the banking system, particularly for some of the mid-sized and smaller government banks.

Thanks & Regards,
Swapnil Tambe.