Adequate provisions, capital buffers, diversified assets and low-cost liabilities should cushion large private banks. With exposure to more vulnerable segments, mid-sized banks, small finance banks and NBFC MFI are seen reporting a relatively weaker performance, ICICI Securities said in a note. “However, given muted credit growth, absence of substantial treasury and revival in opex should keep operational performance moderate. Profitability is expected to witness a healthy surge led by lower provisions.”
