Asset quality cycles
Nim cycles
Asset side cycles come from asset quality issues. Can be due to any macro event like Covid or demonetisation.
Liability side cycle will lead to Nim contraction. Can be due to tighter liquidity conditions. Eg: reduction in supply of commercial papers in 17-18 post IL&Fs or current challenge in deposit growth.
Check armans investor presentation and see the GNPA cycles. Business has done well over 2-4 year time gaps, but such cycles will be there in most of the financial cos
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