Bank Stocks Outlook for the week – 29.06.2015 to 03.07.2015 Expected to trade with a negative bias

Bank Stocks Outlook for the week – 29.06.2015 to 03.07.2015

Expected to trade with a negative bias

 ( www.rupeedesk.in )

Bank stocks are expected to trade with a negative bias next week tracking weakness in the broad market. The Bank Nifty yesterday ended at 18371.50, up nearly 3% from a week ago.

Investor sentiment was dented after the Reserve Bank of India, in its semi-annual Financial Stability Report Thursday, said that while the overall risks to the banking system moderated marginally, banks' asset quality had not witnessed any improvement. The gross non-performing assets of scheduled commercial banks rose to 4.6% at the end of March from 4.5% on Sep 30, data in the report showed.

This was mirrored on the stressed assets front, with the combination of gross NPAs and restructured standard advances rising to 11.1% of total advances at the end of March from 10.7% in September. Within the banking system, state-owned banks continued to show higher deterioration in the asset quality. Public sector banks' stressed assets rose to 13.5% as on Mar 31, compared to 4.6% for private banks.