Macquarie upgrades Kotak Mahindra Bank and City Union Bank, downgrades SBI and others.

From Living Media India Ltd.: 2024-06-20 05:11:34

Foreign brokerage Macquarie upgraded Kotak Mahindra Bank and City Union Bank, but downgraded SBI due to outperformance, upcoming ECL regulations, and falling ROAs and ROEs. They also downgraded NBFCs Bajaj Finance, Cholamandalam, and M&M Finance on expectations of lower growth. They are cautious on insurance but upgraded SBI Life. Macquarie favors private sector banks like Axis Bank and IndusInd Bank, and NBFCs like Shriram Finance and LIC Housing Finance for their attractive valuations and steady power of compounding story. Private sector banks are expected to have healthy ROEs and remain unaffected by ECL regulations. PSU banks face falling ROEs, life insurance companies will see lower VNB growth, and NBFCs will have lower loan growth and return ratios due to RBI regulations.



Read more at Living Media India Ltd.: Bandhan, Kotak, City Union Bank: Macquarie upgrades 4 stocks, downgrades SBI & 3 others