Saturday, April 25, 2009

IT and Bank Sector Weakening

The outlook for the country’s IT sector remains bleak given the lacklustre performance by its large players during the quarter ended March 31, 2009. With the massive fraud hit Indian Techy Market, the place once known to be a powerhouse has seen a very huge deceleration in performance in last several quarters.

Recovery in Business Sentiments seems to be sluggish enough, leading to increase in pressure over billing structure resulting in lower volumes and hence eroding the revenue.

India Infoline IT analyst Rajiv Mehta

There has been a decelerative trend seen in the development activities in the country's top IT companies including IT-majors like TCS and Infy.

Adding to the crundh is the failing of Bank sector to perform, even when the indicators of RBI have been slashed to bare minimum.

ICICI Bank, India's largest in the private sector, has reported a 9.6 per cent drop in net profit after tax at Rs 3,758 crore (741 mn $) for the year ended March 31, against Rs 4,158 crore ($820 million) for the year before. Bank has however earned a higher net interest income by almost 15% y-o-y.

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