MARKET EYE-BofA Merrill turns positive on Indian state-owned banks

Tue Jan 8, 2013 1:54pm IST

Related Topics

Stocks

   

* Bank of America Merrill Lynch upgraded State Bank of India
, Bank of Baroda, and Oriental Bank of Commerce
Ltd 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 as its top pick, and
HDFC Bank Ltd and Axis Bank Ltd 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.

 (abhishek.vishnoi@thomsonreuters.com /;
abhishek.vishnoi.thomsonreuters.com@reuters.net)
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

Jaitley's Health

Jaitley's Health

Finance minister back in hospital for check-up.  Full Article 

Modi's U.S. Visit

Modi's U.S. Visit

Modi to observe strict fast during maiden trip to U.S.  Full Article 

Mangalyaan

Mangalyaan

India's Mars mission a step closer to success with engine test  Full Article 

Shortage of Coal

Shortage of Coal

Coal import rush leads to port congestion  Full Article 

Alibaba IPO

Alibaba IPO

IPO ranks as world's biggest after additional shares sold   Full Article 

Bumper Sales

Bumper Sales

Apple sells more than 10 mln new iPhones in first three days  Full Article 

Asian Games 2014

Asian Games 2014

Full coverage of the 17th Asian Games as Incheon.  Full Coverage 

Reuters India Mobile

Reuters India Mobile

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