Here’s Five Charts in the RBI Banking Financial Stability Report that are worth a look: 1. India Was Biggest Hit in 2013’s “Taper Tantrum”. Least Hit Now! The Federal Reserve showed signs of a rate hike through a “taper” in 2013, and then, all emerging markets were hit badly. And now, when the Fed actually hiked rates, the corresponding “tantrum” has hurt everyone else a lot more – and India, a lot less. Even though our currency is hit, it’s not quite as bad as the others. Put another way – the rupee could get much weaker just to be normal. 2. The Public Sector is the Problem Banker, But Quality in Private Banks Too is Deteriorating Public sector bank stressed loans – adding NPAs and restructured loans – are at nearly 14% of their total loans. Even Private banks show an uptrend, at 4% or so. 3. And Stress Is In The Most Troubled Banks If you divide banks into buckets based on their “stressed advances” ratio – you will find that many banks who don’t do any lending (or not much lending) are doing okay.… (Read On…)
[via Capital Mind]
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