Ashutosh Mishra of Ashika Stock Broking prefers these banking stocks
Ashutosh Mishra, Head-Research, Institutional Equities, Ashika Stock Broking remains positive on the large banks both in private and public sectors
Ashutosh Mishra, Head-Research, Institutional Equities, Ashika Stock Broking is positive on large banks both in the private and public spaces.
Among his preferred picks are, HDFC Bank, Bajaj Finance, and Bandhan Bank.
“This is a good time to look at HDFC Bank. The way things are panning out, they are very well placed to advantage,” he said.
He also likes the microfinance sector. “Things are changing a lot in that space and there can be some good banks and NBFCs which will continue to deliver strong growth as well as profitability from that space,” he stated.
According to CNBC-TV18 analysis, the banking and financial sector may continue to see pressure on net interest margins (NIMs). This is on account of some key factors like cost of funds, end of loan re-pricing cycle, and incremental cash reserve requirement of the Reserve Bank of India (RBI). Slippages or bad loans in a quarter are expected to be on the lower side, but recoveries could be better aiding in asset quality improvements.
Analysts believe companies may lower their FY24 or near-term guidance on NIMs. Deposit growth has been lagging the loan growth, hence, one needs to watch out for deposit growth for many banks.
For more details, watch the accompanying video
(Edited by : Shweta Mungre)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP holds meeting in Delhi as polling underway for 5th phase
May 20, 2024 4:21 PM
UP Police arrests man after viral videos shows him voting multiple times
May 20, 2024 2:18 PM