Indian banks gave highest returns in Asia-Pacific region for second consecutive quarter: S&P Global

Indian banks have benefited from a pickup in credit growth and improving asset quality as the country's economy continues to consolidate a recovery

PGurus Newsdesk

January 13, 2023

Indian banks have benefited from a pickup in credit growth and improving asset quality as the country's economy continues to consolidate a recovery

S&P Global reports: Indian banks outperform Asian peers in Q4 2022 stock returns

Indian banks posted some of the best total stock returns among their Asia-Pacific peers for the second consecutive quarter as they continued to benefit from solid financial metrics, a resurgent equities market, and growth prospects for the country’s economy, S&P Global said in a research report.

“Indian banks occupied 11 of the 15 slots in a list compiled by S&P Global Market Intelligence of Asia-Pacific bank stocks with the highest total returns in the quarter ended December 31, 2022,” the report said.

The stocks of two Indian banks – the Punjab & Sind Bank and the Jammu and Kashmir Bank Ltd – occupied the top two spots among 15 banks in the Asia Pacific region in terms of returns in the quarter that ended December 31, 2022, said S&P Global Market Intelligence.

The stock performance of Indian banks has been broad-based, with both small and big lenders posting positive total returns, the report notes.

Indian banks have benefited from a pickup in credit growth and improving asset quality as the country’s economy continues to consolidate recovery. The results of a recent Reserve Bank of India stress test show that Indian banks are well capitalized, capable of absorbing shocks, and would comply with minimum capital requirements even under adverse stress scenarios, S&P Global said.

According to the report, the Punjab & Sind Bank posted returns of 118 percent while the Jammu and Kashmir Bank gave 104.69 percent.

Apart from Indian banks, three banks from mainland China and one from Japan made it to the list of top performers in the fourth quarter of 2022.

[With Inputs from IANS]

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