Banks likely to post 36.3% rise in Q3 net profit at Rs 38,153 crore

The bad loans saw a dip in Q2, both in absolute and percentage terms. The trend is likely to prevail in Q3

The listed banks are likely to post a 36.3 per cent year-on-year (YoY) rise in net profit at Rs 38,153 crore for the December quarter (Q3FY22), helped by a lower provisioning burden for stressed loans.

Sequentially, net profits may decline 2.2 per cent from Rs 39,022 crore in Q2FY22, according to Bloomberg’s estimates. The projection is based on analysts’ assessments covering 19 lenders — six public sector and 13 private banks.

Domestic brokerage Motilal Oswal said earnings of private as well public sector banks are likely to pick up, led by a recovery in business/fee income and a gradual reduction in credit