A study on the emerging trends in the financial sector by credit rating agency Icra has revealed that the banking sector?s net profitability is likely to dip by 10-15 basis points in the current fiscal year. The report suggests tough times ahead for the Indian banking sector over the short term driven by pressures on key parameters like asset quality, capital mobilisation and the net profitability. Karthik Srinivasan, co-head ? financial sector ratings, Icra Limited said, ?Over the next three years, to grow their balance sheet by 20% on y-o-y basis, the banking sector would need fresh capital of over Rs 90,000 crore to meet the rising corporate demand. Raising the requisite capital would be a major challenge for the banking sector in absence of overseas funds? influx in the prevailing times, where liquidity crunch is a major cause of concern.?
?Profitability of banks likely to fall?
A study on the emerging trends in the financial sector by credit rating agency Icra has revealed that the banking sector?s net profitability is likely to dip by 10-15 basis points in the current fiscal year.
