"The largest eight banks, which account for more than 80 per of the total assets of the banking system have recorded impressive growth in the first quarter of 2014 with profits increasing by 21 per cent on average, year-on-year," said Iradian.
The NPLs -to-total loans ratio is estimated to have declined from the peak of 8.7 per cent in 2012 to 8.1 per cent in 2013 and is projected to decline further to 7.4 per cent for the full year 2014, according to IIF forecast.
The total and specific provisions are seen adequate in the current circumstances is expected to be 100 per cent and 80 per cent of NPLs, respectively, by the end of this year as loans to deposit ratio down at 91 per cent.
"The outlook for the
The IIF has forecast 11 per cent growth in loans and deposits each, with provisions remaining stable and NPLs declining further to 7.4 per cent.
"Most of the asset quality issues are linked to the property sector, which has been recovering rapidly recently. If some of the loans to
The IIF expects loan growth to moderate this year. Growth in loans to the private sector and GREs grew by 13 per cent last year. "We expect the loan growth to come down to 10 per cent this year due to central bank regulations relating to exposure to real estate sector and GREs. We also expect a number of companies tapping capital markets to meet their financing needs," said Iradian.
The IIF expects the banking sector to benefit from the strong revival in the
Amidst the strong positive indicators, according to the IIF, the medium-term outlook of the
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