PSB Q2 review: NII, net profit improve; experts see higher slippages ahead

Banks may report higher NPAs on account of DHFL, Coffee Day Enterprises, Cox & Kings, and possibly Vodafone Idea in the coming quarters

Over 100 per cent year-on-year (YoY) growth in net profit and double-digit drop in gross non-performing assets (GNPA) marked the September quarter earnings for the banking sector. Analysts, however, caution that the worst may not be over yet, and the sector could see more slippages in the coming quarters.

This, they believe, could be on the back of banks reporting more bad loans on account of DHFL, Coffee Day Enterprises, Cox & Kings, and possibly Vodafone Idea. That apart, slippages can also rise in the coming quarters of the current financial year (FY20), as banks are yet to recognise some of