Private Banks' Q4 nos may not reflect full extent of Covid-19 hit: Analysts

Among large banks, the brokerage sees ICICI Bank's PAT declining 49 per cent QoQ to Rs 2,100 crore in Q4FY20, followed by a 68 per cent sequential decline in Axis Bank's PAT at Rs 564.6 crore.

As the quantum of the impact of coronavirus (Covid-19) remains hazy, analysts expect banks, especially the larger ones, to report stable March quarter (Q4FY20) earnings. This, they say, would be possible due to the Reserve Bank of India’s three-month moratorium on loan repayment, and due to the lockdown being imposed in the second half of March. 

"As the shutdown of economic activity was undertaken in the second half of March 2020, the full impact of the fallout will not be reflected in Q4FY20 numbers. In the current uncertain environment, large banks like HDFC Bank continued to report strong growth in advances