Large firms may have escaped any Covid hit

Large corporate houses have mostly been left unscathed by the Covid-19 pandemic, suggest the asset quality numbers of foreign banks that primarily serve such companies in India.For fiscal 2021, Deutsche Bank reported strong asset quality numbers in India with net non-performing assets at 0.86% of its total assets, as against 1.31% the previous year.HSBC had hinted that asset quality was largely in check for its portfolio. Most other foreign banks having a large share of corporate loans are also expected to report stable asset quality numbers in India.“The last financial year was hugely challenging by any measure but by staying close to our clients and supporting them with their liquidity and risk requirements, the teams at Deutsche Bank once again demonstrated their resilience and dedication,” Deutsche Bank India chief executive Kaushik Shaparia said. “Despite the impact of Covid, our asset quality continues to be strong … The additional capital infused during the year positions us strongly for FY22 as well.”Deutsche Bank announced that its India branches had posted a profit of ₹1,527 crore for the year ended March 31, 2021, up 48% from the previous year’s ₹1,031 crore.Net revenue rose 23% to ₹5,537 crore, aided in large part by a strong cost and risk discipline. During the year under review, Deutsche Bank increased the capital deployed in its India branches by ₹3,326 crore to support growth across all its business lines, taking the total capital deployed to ₹19,345 crore. Capital adequacy ratio was 17.28%, compared with 14.93% at the end of March 2020.Deutsche Bank India’s total assets during the year increased 7% to ₹1,29,430 crore. Total advances rose 3% to ₹52,438 crore and deposits grew 11% to ₹66,224 crore.

from Economic Times https://ift.tt/3wC3cFy