Bank Stocks Outlook for the week – 18 to 22.08.2014
( www.rupeedesk.in )
( www.rupeedesk.in )
Bank stocks are likely to take opening cues for next week
from Prime Minister Narendra
Modi's is likely to rollout a scheme aimed at providing bank
accounts to 150 mln people
by 2015. The features of scheme include 5,000 rupees
overdraft facility for accounts,
which are linked to Aadhar-linked and inbuilt accidental
insurance cover of 100,000
rupees.
The plan to allow overdraft facility is seen as added burden
on banks, especially stateowned
banks, already saddled with non-performing assets.
Apart from comments to growth and inflation, the ambitious
financial inclusion scheme
is widely eyed as reaching far off corners of the country is
an added cost for banks. Plus
the plans on overdraft is a major issue.
Apart from the Independence Day speech, banks stocks are
likely to track broader
markets, which are seen moving in narrow range in the
absence of major triggers.
Among specific companies, Dhanlaxmi Bank will be in focus on
Monday as the private
sector lender, after market hours Friday, reported a 15.4%
on-year fall in Apr-Jun net profit at 30.3 mln rupees.
