Banking Sector
BofA On Banks - Year Ahead 2022 : 11.01.2022
* BofA is constructive on banks on the back of good marco set-up with near term risk.
• Long due 'as normal as it
Banks are now leading from the front : 11.01.2022
* Currently, there is no IPO euphoria in markets
* Sizable correction in mid- and smallcap stocks that had turned frothy
* Correction has been short-lived and sectoral churn is visible
* We have to learn to live with market volatility
UBS ON BANKS : 08.07.2021
* Expect muted loan growth & 25-50bps increase in overall NPLs in Q1
• ECLGS scheme is likely to prevent near term deterioration
* Unsecured loans (PL, cards) and LAP are most impacted for private sector
* Prefer banks with greater provision buffers
* Least preferred names are Kotak and PNB
CITI ON BANKS : 06.07.2021
• Pre-Quarter filings show moderation in growth
• Credit growth impacted during 1QFY22
• Deposit growth momentum continues largely strong
• Q1 earnings to be impacted by slower growth
• Q1 may see higher asset quality stress
• Situation is likely to be much better for rest of the year
JPmorgan on Banking sector - 10.06.2021
* Sanjay Mookim of @jpmorgan prefers #banks as his top pick.
• Modelling Credit Growth: Should Improve Post Pandemic. Stay Overweight On Banks
• Strong Monetary Stimulus Currently In Place Should Drive Lending Growth Higher Post-Lockdowns
• Banks Should Do Well Relative To Market If That Happens
* Prefer ICICI Bank, HDFC Bank And SBI.
* See Bottom-Up Signs Of Specific Lending Constraint
* NIFTY Is Trading At C.21x 1-Yr Forward P/E (Close To 15 Year Highs)
* This Has Made Most Stocks/Sectors Very Expensive
* Incremental Investing Must Assume The Global Valuation Support Sustains
* Indian Credit Growth Should Improve-Banks Should Remain Key Picks
UBS ON BANKS : 09.06.2021
* Microfinance overdue loans remained significantly above normal as of March
* Entire overdue build up from H1FY21 remains in default as of March 2021
* Seven states with 50% of MFIN loan share are still highly delinquent
* Prefer Axis, ICICI and SBI; maintain Sell ratings on Kotak and PNB
