Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
02 August, 2015 15:48 IST
`Accumulate` Axis Bk, ICICI Bk and HDFC Bk: SMC Global
Source: IRIS | 18 Dec, 2012, 02.15PM
Comments  |  Post Comment

India's central bank, the Reserve Bank of India (RBI), in its mid quarter monetary policy review on Tuesday has kept CRR, repo and reverse repo rate unchanged. The market was expecting 25 bps rate cut in CRR to improve liquidity in the banking system.
 
The RBI continued to maintain a status quo on account of uncertainty over inflationary trajectory. However, it reiterated the fact that easing inflation will provide an opportunity to shift focus on growth rather than inflation management. Further, RBI is set to conduct OMOs in order to arrest any liquidity constraints which might come in way for smooth functioning of the financial system.

Vishal Narnolia, SMC Global Securities, said, ``We expect central bank to shift gears in order to focus on growth through monetary easing in January 2012 at the same time keeping a track on inflationary pressure. Currently, we do not foresee a material change in lending or deposit rates. However, we anticipate a material decline in interest rates in 4QFY13 with RBI shooting its first bullet to cut down rates which will provide some comfort to corporate facing high financial expense. Banks will also breathe a sigh of relief as further deterioration in asset quality will be toned down. Keeping in mind, lower interest rate regime likely to hit the system, we recommend accumulating banks with prudent asset quality and high retail base including Axis Bank, ICICI Bank and HDFC Bank."

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.

Comments Post comment 
 Post Comment
Name Email
Comment
Security Code type    into this box
Related Articles
Tata Motors sales rise 1% in July - 01-Aug-2015 17:30
Atul Auto sales up 5% in July - 01-Aug-2015 16:32
TVS Motor Company sales rise 2% in July - 01-Aug-2015 16:16
Escorts tractor sales drop 20.5% in July - 01-Aug-2015 15:23
Ashok Leyland sales jump 40% in July - 01-Aug-2015 15:00
Mahindra Tractor sells 14,273 units in July - 01-Aug-2015 14:48
M&M auto sector sales fall 3% in July - 01-Aug-2015 14:22
Maruti Suzuki sales rise 20% in July - 01-Aug-2015 12:26
SPARC receives CRL from USFDA for Latanoprost NDA - 01-Aug-2015 11:15
OMCs cut petrol price by Rs 2.43/litre; diesel by Rs 3.60/litre - 01-Aug-2015 10:26
OMCs cut petrol price by Rs 2.43/litre; diesel by Rs 3.60/litre - 01-Aug-2015 10:26
more...
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer