homemarket Newsstocks NewsHDFC Bank's Q1 no indicator of what lies ahead for banking sector: Geosphere's Sanger
HDFC Bank's Q1 no indicator of what lies ahead for banking sector: Geosphere's Sanger
HDFC Bank on Saturday reported a decent set of numbers for the quarter ended June. However Geosphere Capital's Arvind Sanger has cautioned that the performance should not be extrapolated for the rest of the banking sector.
"HDFC Bank clearly is going to come through this crisis with the less stress, although obviously not unscathed," Sanger told CNBC-TV18.
"But we can say that the rest of the banking sector will see more severe stresses and I suspect this is going to play out over time," he said.
Sanger said it was good to see banks and non-banking finance companies raising additional capital.
"I think it is a prudent thing that the banking and some of the non-banking financial companies (NBFCs) have done which is raise additional capital to create buffer for whatever develops in terms of how long the economic pain from the COVID-19 is felt. Right now neither HDFC Bank nor any of the other banks have a clear-enough crystal ball to say whether this is economic damage for the businesses and therefore whatever comes out from the bad loans that emerge, will that last over three-six months or 12-months longer as we emerge through this COVID-19 crisis," he said.
First Published: Jul 20, 2020 10:21 AM IST
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