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NII under pressure; asset quality continues to improve
CLSA expects private sector banks, which have been stock market laggards over the past few months, to give better returns ahead, given a good business outlook and inexpensive valuations
Sequentially bottom line shows a small dent
Growth, asset quality and NPA resolutions remain key metrics to be watched for the entire lending space given uncertainty regarding the return to normalcy amid Covid-19 pandemic, say analysts
While NPA ageing and mark-to-market losses will keep provisioning elevated, high funding cost and slower credit growth will impact topline