Q4FY22E is expected to see a healthy overall performance with key business figures disclosed pre-results and RBI data indicating strong credit offtake vs. the previous quarter. March quarter being seasonally strong in terms of disbursements and impact of third wave of pandemic being minimal, we believe after two years we would witness full-fledged business activity in Q4FY22. Operational numbers should also show improvement with various parameters like asset quality, margins, etc, witnessing improvement. Advances growth is expected to be driven by retail and MSME segment as they have been in the past few quarters. However, corporate loans, which used to be a negative drag on overall industry credit growth have started moving in the positive territory. Overall retail + MSME focused lenders (banks, NBFCs) should do well while the MFI segment should see better collections with a revival in economic activity.
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