ET Markets
12,197.10-51.15
Stock Analysis, IPO, Mutual Funds, Bonds & More

JM Financial says buy HDFC, IndusInd and Yes Bank

"Agility in the face of rapid changes in the landscape, as traditional moats are besieged, is needed for survival. PvBs are much ahead of PSBs in this respect too," the report said.

, ET Bureau|
Jan 19, 2017, 09.26 PM IST
0Comments
JM Financial said it saw still some stressed asset accretion ahead and preferred retail oriented lenders due to their granular portfolios and low credit concentration.
JM Financial said it saw still some stressed asset accretion ahead and preferred retail oriented lenders due to their granular portfolios and low credit concentration.
JM Financial in a research report said it prefers private banks (PvB) over public sector banks (PSB) while extending a cautious outlook on the banking sector as a whole. It said strong leadership, adequate capitalisation, large retail franchises and skilled manpower provided a strong competitive advantage to PvBs over peers.

"Agility in the face of rapid changes in the landscape, as traditional moats are besieged, is needed for survival. PvBs are much ahead of PSBs in this respect too," the report said.

The brokerage's top picks included HDFC Bank, IndusInd Bank, YES Bank and ICICI Bank. Yes Bank on Thursday reported a 30.6% rise in profit in its third quarter earnings to Rs 882.6 crore compared to a year-ago period. The growth due to a strong net interest income.

JM Financial said it saw still some stressed asset accretion ahead and preferred retail oriented lenders due to their granular portfolios and low credit concentration.

It said large wholesale lenders would continue to experience high stressed asset accretion, weaker core revenue growth and hence muted earnings growth through FY18E with a recovery potentially FY19E onwards.

It said Kotak Mahindra Bank and Bank of Baroda would be a hold valuations were high for Kotak and a sustained high stressed loan formation was seen in the case of Bank of Baroda. Punjab National Bank would be a sell, the report said.

Also Read

HDFC Overnight Fund

HDFC Balanced Advantage Fund

Stocks like HDFC Bank, ICICI Bank & HDFC looking good

HDFC Equity Fund – A Multi cap fund

Which HDFC scheme offers regular monthly returns?

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service