KUALA LUMPUR, Aug 23 (Bernama) — Tabung Haji’s (TH) asset quality and its profit source should be among the key metrics in assessing the institution’s financial strength, aside from the hibah (profit) distribution, according to an economist. Associate Prof Dr Abdul Rahim Ridzuan, a lecturer at Universiti Teknologi MARA’s (UiTM) Faculty of Business and Management, said focus should also be on the sources of TH’s earnings — specifically, whether they are backed by strong asset performance or driven by temporary factors. “Don’t just ask, ‘how much is the hibah?’ but also ask, ‘Where does the profit come from, how sustainable […]

Investing.com -- Indian banks are projected to maintain consistent asset quality over the next year, despite rising global economic uncertainties, according to a Tuesday report from Moody’s Ratings. The agency attributes this stability to supportive domestic macroeconomic conditions, including government capital expenditure, tax relief for middle-income households, and monetary policy easing. These measures are anticipated to stimulate consumption and investment, assisting lenders in managing asset quality. Furthermore, India’s minimal reliance on global goods trade is expected to provide a buffer against external risks, Moody’s noted. The Reserve Bank of India (NSE:BOI) (RBI) is set to make its next policy decision on Friday. The central bank is predicted to decrease the repo rate by 25 basis points for the third time in a row. Moody’s anticipates that the systemwide non-performing loan (NPL) ratio will stay within the range of 2% to 3% over the upcoming year, which is roughly the same as the 2.5% recorded at the conclusion of December 2024. The performance of wholesale loans, those provided to organizations, is expected to remain robust for Indian lenders. This is due to companies maintaining good profitability and low leverage levels. However, the future of unsecured retail loans appears less promising. Moody’s cautioned that the formation of new NPLs in this sector has risen over recent quarters, contrasting with the relatively stable performance of secured retail loans. Moody’s further stated that smaller private sector banks, with a higher exposure to unsecured lending, will likely continue to experience more asset quality pressures than their larger private and public sector counterparts. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. Should you invest $2,000 in SBI right now? ProPicks AI are 6 model portfolios created by Investing.com which identify the best stocks for investors to buy now. The stocks that made the cut could produce monster returns in the coming years. Is SBI one of them?

Mahalaxmi Bikas Bank has received a prestigious award from the Indian Chamber of Commerce in Kolkata, India. The bank was honored in the asset quality category.