HDFC Bk,PNB,BoB,Union Bk,& Indian Bk top picks of M Oswal

According to Motilal Oswal's report, its top picks are HDFC Bank, Punjab National Bank (PNB), Bank Of Baroda (BoB), Union Bank, and Indian Bank.

Motilal Oswal's Report:

RBI has cut the Cash Reserve Ratio (CRR) by 100bp to 5.5% from its current level of 6.5%. In view of the ebbing of upside inflation risks coupled with concerns of slower growth, RBI has further reduced the repo rate by 50bp to 7.5% from November 3. We expect banks to reduce both lending and deposit rates. Wholesale deposit rates to also reduce. In the last few months, banks have been borrowing at 12-13% and Incremental lending was happening at 14-16%. While the step is positive for all banks, our preference will continue to be on banks having a strong liability franchisee and having low delinquency risks. Our top picks are HDFC Bank, PNB, BoB, Union Bank, and Indian Bank. We also like State Bank of India (SBI) and Axis Bank for their strong liability franchisee; however, asset quality risks are higher.

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Source: Moneycontrol