Bank Stocks Outlook for the week - 11 to 15.09.2017

Bank Stocks Outlook for the week - 11 to 15.09.2017

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Bank Stocks Outlook for the week - 11 to 15.09.2017 )

 Most private lenders to gain; PSU banks seen down Stocks of most public sector banks are expected to underperform Next week, while private sector banks are seen continuing their increase in market Share. Further, investors will look out for any news from the government regarding consolidation among state-owned lenders, with speculation that Bank of Baroda is in talks for acquiring one of the smaller state-owned banks placed under the Reserve Bank of India's prompt corrective action. The process of consolidation in this segment is a positive for the sector, and will help channelise resources to support only profitable banks. IDBI Bank is seen in focus next week as it moved the Supreme Court seeking restoration of insolvency proceedings against Jaypee Infratech Ltd in the National Company Law Tribunal, Allahabad. The apex court will hear the plea on Monday. Private banks will continue their upward trend, at the expense of state-owned banks, after they displayed cautious lending in the last quarter. Meanwhile deposit growth for public banks was at 8% yoy (year-on-year). The credit deposit ratio for private banks grew by 204 bps qoq (quarter-on-quarter) and that of public sector banks came off by 27 bps. On private banks in particular, remains positive on YES Bank and its execution abilities and the lender believes most of the National Company Law Tribunal cases, that the bank has exposure to, will go to restructuring rather than liquidation and insolvency professionals have already begun to receive restructuring proposals. Axis Bank has disclosed its exposure worth 25 bln rupees towards the second list of accounts, where the Reserve Bank of India has asked lenders to initiate a debt resolution process.This comes after the central bank had flagged 12 large stressed accounts for resolution in June. The market anticipates other lenders also to follow suit and disclose their exposure to the second list, which will lend further cues. The Bank Nifty is seen in the range of 23900-24100 for the next week

Bank Stocks Outlook for the week – 07 to 11.08.2017