Mar 22, 2013, 06.14 PM IST
After a series of bad loans bruises, banks' asset quality is likely to improve in 2013-14. The key assumption behind this is the GDP growth estimated for the next year at 5.8% as against 5.1% in 2012-13.
After a series of bad loan bruises, banks' asset quality is likely to improve in 2013-14. The key assumption behind this is the GDP growth estimated for the next year at 5.8% as against 5.1% in 2012-13.
"We expect India banking to improve, given the likely revival in credit demand and better deposit mobilization in a falling policy-rate context. Besides, asset quality headwinds are likely to subside, led by slower credit growth over FY11-13, lower interest rates and better industrial production," Clyton Fernandes, Kaitav Shah and Asheeta Kapadia, three banking analysts from Anand Rathi India Equities said in a report.
Anand Rathi top picks: ICICI Bank (target: Rs 1375 from current Rs 1,051), IndusInd Bank (Rs 485 from current Rs 415), ING Vysya Bank (Rs 669 from current Rs 562) and Karur Vysya Bank (Rs 574 from current Rs 474).
Here are some key takeaways from the report:
Nifty trend remains up; minor dip in prices is opportunity to buy. Within the up move, there will be choppy conditions
A minor correction in prices saw the Nifty move down, just on the eve of the publication of exit polls on elections to five state assemblies. Markets are in an up trend. We follow the up move while it lasts.
Action in ICICI Bank
Video of the day
Dec 4 2013, 16:28
- in Business
Dec 4 2013, 11:08
- in FII View
We notice that this Email ID is already verified against Moneycontrol User ID. Just enter your password and login to Set Alert.
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.