Banks and NBFCs combined profit likely at Rs 1,40,000-1,50,000 crore this quarter: Sandip Sabharwal

economictimes.indiatimes.com:

Sandip Sabharwal, asksandipsabharwal.com, says “this quarter all banks and NBFCs combined are likely to have a profit of Rs 1,40,000-1,50,000 crore which is a huge change over what was there five years back when the banking industry was in losses. This is the biggest positive for the Indian economy, a healthy banking sector and that will continue to support growth of the economy.”What are your thoughts on the banking space?A lot of banking heavyweights have come out with their earnings. Any key takeaways?The biggest takeaway from all the banking sectors results is that the net NPAs seem to be under control.

There does not seem to be fresh incremental additions into NPAs at this stage. Now there are some fears that unsecured lending would lead to some uptick going forward but that is something we need to see. Banks balance sheets are very healthy and deposit growth has started to move up as banks have started increasing rates.

There is some moderation in the interest margins which was expected. Overall, a healthy performance. This quarter all banks and NBFCs combined are likely to have a profit of Rs 1,40,000-1,50,000 crore which is a huge change over what was there five years back when the banking industry was in losses.

This is the biggest positive for the Indian economy, a healthy banking sector and that will continue to support growth of the economy. Did you have a chance to look at Paytm and is it a company that you are willing to give a shot to? Not really simply because of the fact that I do not think they have any sort of sustainable business model. One, their core business is stagnating; it is growing but not at the same pace. The entire improvement in profitability is coming out of the commissions they have