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Stock of banks are likely to remain weak, in line with expected subdued performance of broader share indices amidst lack of positive triggers. The sector is currently under a lot of pressure. So weak trend and negative bias is likely to continue, unless there is some big surprise from RBI (Reserve Bank of India). Concerns over asset quality and capital are the two big negatives for PSU (public sector banks.) On Monday, bank stocks are likely to trade with caution ahead of the balance of payments data for Apr-Jun, which will be detailed by RBI. A Cogencis poll pegs India's current account deficit at $22.8 bln in Apr-Jun against $18.1 bln a quarter earlier. Investors will also wait for the comments of Financial Services Secretary Rajiv Takru who is scheduled to meet Indian Banks' Association and RBI on Monday on the non-performing assets issue. Private sector banks are better poised that their state-owned counterparts in terms of asset quality issues. In a conference call, Fitch Ratings said it expects the capital position for Indian banks, and particularly state-owned ones, to appear even weaker, and now expects the non-performing assets to peak by Mar 2016. State Bank of India may remain in focus as investors await the
Stock of banks are likely to remain weak, in line with expected subdued performance of broader share indices amidst lack of positive triggers. The sector is currently under a lot of pressure. So weak trend and negative bias is likely to continue, unless there is some big surprise from RBI (Reserve Bank of India). Concerns over asset quality and capital are the two big negatives for PSU (public sector banks.) On Monday, bank stocks are likely to trade with caution ahead of the balance of payments data for Apr-Jun, which will be detailed by RBI. A Cogencis poll pegs India's current account deficit at $22.8 bln in Apr-Jun against $18.1 bln a quarter earlier. Investors will also wait for the comments of Financial Services Secretary Rajiv Takru who is scheduled to meet Indian Banks' Association and RBI on Monday on the non-performing assets issue. Private sector banks are better poised that their state-owned counterparts in terms of asset quality issues. In a conference call, Fitch Ratings said it expects the capital position for Indian banks, and particularly state-owned ones, to appear even weaker, and now expects the non-performing assets to peak by Mar 2016. State Bank of India may remain in focus as investors await the
