Indian Banking Sector - Margin Expansion, Lower Credit Costs To Enhance Return Ratios: Systematix

Indian rupee banknotes are counted in India. (Photographer: Dhiraj Singh/Bloomberg)

Indian Banking Sector - Margin Expansion, Lower Credit Costs To Enhance Return Ratios: Systematix

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Research Report

The Indian banking industry is poised to witness a healthy rise in credit demand from the retail and micro, small and medium enterprise verticals.

We draw comfort from the characteristics of these verticals as they generate higher yields and are much more granular in terms of customer base and geography.

We prefer large private sector banks with a high retail credit composition and initiate coverage on Axis Bank Ltd., ICICI Bank Ltd., Kotak Mahindra Bank Ltd., HDFC Bank Ltd.

We prefer State Bank of India amongst public sector banks as it is the market leader in most retail credit segments and Federal Bank Ltd. amongst mid-sized regional banks as we expect steady growth in its credit book.

Click on the attachment to read the full report:

Systematix Indian Banking - Sector Report.pdf

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