BofA Merrill turns positive on Indian state-owned banks

Tue Jan 8, 2013 2:29pm IST

An employee arranges Indian currency notes at a cash counter inside a bank in New Delhi June 8, 2010. REUTERS/Mukesh Gupta/Files

An employee arranges Indian currency notes at a cash counter inside a bank in New Delhi June 8, 2010.

Credit: Reuters/Mukesh Gupta/Files

Related Topics

Stocks

   

Reuters Market Eye - Bank of America Merrill Lynch upgraded State Bank of India, Bank of Baroda (BOB.NS), and Oriental Bank of Commerce Ltd (ORBC.NS) to 'buy'.

The investment bank says upgrades come on the back of a steepening bond yield curve in the anticipation of RBI rate cuts, stronger-than-expected loan recoveries, and reduced quality pressures.

BofA Merrill also upgrades its price objectives for private banks, retaining ICICI Bank Ltd (ICBK.NS) as its top pick, and HDFC Bank Ltd (HDBK.NS) and Axis Bank Ltd (AXBK.NS) as its "preferred" names. All three banks have 'buy' ratings.

"Private banks will likely continue to deliver structurally superior earnings and RoEs, especially over the medium term," BofA Merrill says in a note dated Tuesday.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

GDP Preview

GDP Preview

Indian economy warms in after-glow of Modi's triumph   Full Article 

Pharma Sector

Pharma Sector

In race for bigger margins, drug makers willing to lose the India "advantage".  Full Article 

Markets This Month

Markets This Month

Tata Motors, M&M top Sensex gainers  Full Article 

Jan Dhan Yojna

Jan Dhan Yojna

Modi: Banking for all to end "financial untouchability".  Full Article 

Reuters Poll

Reuters Poll

Economy likely grew faster in June quarter  Full Article 

Tracking Monsoon

Tracking Monsoon

Monsoon forecast to be better for crops next week  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage