Crude oil, uneven monsoon pose risk to banks despite benign asset quality: Report

Higher crude oil prices and drought conditions in five states may impact Indian banks' asset quality outlook. This follows a stable credit cost scenario for private and public sector banks. The report suggests monitoring external factors affecting borrowers' repayment capacity. While deposit growth has improved, there are risks to profitability and net interest margins. Investors are advised to keep an eye on these developments in the coming quarters.