Bad assets harming banks revenue 😷

Bad assets harming banks revenue 😷
  • Kotak Mahindra said its profits are up a solid 32% YoY, while ICICI grew its profits by 78% YoY. Consistent with other banks so far, Kotak’s asset quality worsened a bit too — with bad loans rising by a tiny 0.07%, while ICICI’s expanded by 0.2%, both leaving a bad aftertaste.
  • Meanwhile, in the auto world, Tata Motors managed to grow its revenues by more than 100% YoY pulling in ₹66K crores for the quarter. Margins dropped from 14% to 8% however — as rising chip shortages, operating challenges, and increasing raw material cost weigh things down.

Key takeaway — so far, performance across leaders of India Inc. has been so freaking consistent — revenues coming in through the door look solid, but internally, lower margins, soft profits, and bad assets (for banks) keep management sweating.

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