Banks Q4 Results Preview — DRChoksey Remains Cautiously Optimistic; SBI, ICICI Bank Among Top Picks

The banking sector’s asset quality remains largely stable on the back of healthy recoveries, proactive provisioning, and a well-diversified loan mix. However, IndusInd Bank and Bandhan Bank will continue to face asset quality challenges, particularly in MFI portfolios..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Deven Choksey Report.The banking sector outlook remains cautiously optimistic, with a shift towards measured credit expansion amid tighter underwriting in riskier segments.Asset quality risks persist, particularly in personal loans and microfinance, warranting a cautious stance. However, the sector remains resilient, supported by strong capital buffers and a shift toward secured lending, ensuring long-term stability.Banks are currently trading at 1.7 times price/book value for FY27E, significantly below their five-year average industry P/B multiple of 2.8x. This valuation discount reflects concerns around margin compression, elevated credit costs, and moderation in credit growth..ICICI Bank and SBI remain our preferred picks, given their strong resilience to macroeconomic challenges. Both banks demonstrate robust business momentum, stable asset quality, and superior return ratios, positioning them well for outperformance in a challenging environment..Click on the attachment to read the full report:.Cement Q4 Results Preview — DRChoksey Maintains Constructive Stance; UltraTech, Shree Cement Among Top Picks.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Banks Q4 Results Preview — DRChoksey Remains Cautiously Optimistic; SBI, ICICI Bank Among Top Picks

'Buy' HDFC Bank, Axis Bank recommends DRChoksey and has 'Hold' rating on IndusInd Bank.

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