Helping hand: A security guard walking past the entrance of the Reserve Bank of India headquarters in Mumbai. The bank extended a debt restructuring package after the second wave of the virus in April. ― AFP
MUMBAI: The widening gap between India’s private banks and their state-backed peers is expected to be laid bare this earnings season with investors looking for further signs that players such as HDFC Bank Ltd are better placed to step up lending when the country’s second coronavirus wave subsides.
Many shareholders will be on the lookout for indications that private lenders have enhanced already stronger buffers to give them more wiggle room to step up lending in an eventual recovery. One metric is key – private sector banks’ market share in terms of loans surged about 36% in 2020 from about 21% five years ago.
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