Indian banks may absorb Q2 treasury losses, Haria says
In short
Indian banks may be able to handle second-quarter treasury losses, according to Digant Haria. He said 17% to 18% credit growth should help offset the hit and keep lender margins steadier.
This matters for bank stocks because RBI’s October policy and foreign selling could also move prices. The source does not say how big the losses will be.
What the reporting says
Indian banks are expected to absorb second-quarter treasury losses, with Digant Haria saying 17%-18% credit growth should cushion the hit and help lender margins stabilise. The reporting also flags RBI’s October policy and foreign selling as key factors for bank stocks. The exact size of the treasury losses and the final policy outcome are not stated.
Why it matters
Digant Haria of GreenEdge Wealth Services expects Indian banks to absorb Q2 treasury losses, saying 17%-18% credit growth should provide operating leverage and help margins stabilise. The reporting also points to the RBI’s October policy and foreign selling as important drivers for bank stocks. The impact is mainly on lender profitability and share performance, but the exact loss figure and policy result are not given.