These 9 banking stocks can give more than 20% returns in 1 year, according to analysts
It is probably after a long time that a PSU bank’s results have surprised the street. Why? Because it was able to maintain its net interest margin, or NIM, at a time when margins were expected to decline in the entire banking space. Declining interest rates tend to create short-term pressure on margins. But look at the performance of a large number of banks – they have been able to buck this old trend. It appears that the RBI’s oversight has had a salutary effect on banks. Gross NPAs are at decadal lows across many banks. Provisioning buffers are strong, reducing future credit cost pressures. Will this lead to a situation where banks lead the next phase of rally in the markets?
It is probably after a long time that a PSU bank’s results have surprised the street. Why? Because it was able to maintain its net interest margin, or NIM, at a time when margins were expected to decline in the entire banking space. Declining interest rates tend to create short-term pressure on margins. But look at the performance of a large number of banks – they have been able to buck this old trend. It appears that the RBI’s oversight has had a salutary effect on banks. Gross NPAs are at decadal lows across many banks. Provisioning buffers are strong, reducing future credit cost pressures. Will this lead to a situation where banks lead the next phase of rally in the markets?
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