look news india
A very big and positive news is coming out from the Indian banking and financial sector which is giving a new impetus to the country’s economy. The pace of credit i.e. loan taking in the country has reached the highest and record level in the last 10 years. This historic surge has been recorded in the loan portfolio of banks due to the expansion of industries, development of infrastructure and increasing demand for home loans, car loans and personal loans among the general public. In view of this strong loan growth data, domestic and global brokerage houses have become extremely bullish on banking stocks. Experts believe that the country’s big banks are going to get the biggest benefit of this credit boom.
Credit boom will brighten the fortunes of banks and increase profits.
Banking sector experts and market analysts say that loan growth reaching its highest level in 10 years shows that the country’s economic activities are in a very strong position. From Dalal Street in Mumbai to big corporate hubs like Delhi and Bengaluru, the demand for credit is continuously increasing. Due to this huge demand for loans amid improvement in the asset quality of banks and decreasing NPA, it is expected that there will be a tremendous increase in the net interest margin (NIM) and net profit of the banks in the coming quarters. This is the reason why big investors are now increasing their focus on banking index.
These 3 big banks joined the favorite list of brokerages
Amidst this surge in the market, leading global brokerage firms have expressed their strongest confidence in the three biggest players of the Indian banking sector. According to brokerage reports, private sector juggernaut ICICI Bank, the country’s largest private bank HDFC Bank and the largest public sector bank State Bank of India (SBI) have been placed in the category of ‘Top Pick’ i.e. most preferred stocks. Brokerage houses believe that these three banks have a strong deposit base, nationwide network and excellent digital infrastructure, which will help them make the most of this loan growth.
What is the opinion of experts and new target price for investors?
If you are a stock market investor or want to place long-term bets in banking sector shares, then according to experts, this can prove to be a great opportunity. Brokerages have made a big increase in the target price of shares of ICICI Bank due to its consistently strong performance, HDFC Bank which is moving towards stability after the merger and SBI which has a strong retail loan book. Analysts believe that investing in these heavyweight stocks will not only strengthen the portfolio, but investors can also get bumper and safe returns in the coming times.