BofA-ML upgrades state-run banks, SBI shares gain over 1%
will likely continue to deliver structurally superior earnings and return on equities, especially over the medium term. We were positive on private banks, especially ICICI Bank, HDFC Bank and Yes Bank," the report said.
Stocks More on SBI
Company INFO More on ICICI Bank
BofA Merrill turns positive on Indian state-owned banks
Reuters: * Bank of America Merrill Lynch upgraded State Bank of India, Bank of Baroda, and Oriental Bank of Commerce Ltd to 'buy'.
* The investment bank says upgrades come on the back of a
steepening bond yield curve in the anticipation of RBI rate
cuts, stronger-than-expected loan recoveries, and reduced
quality pressures.
* BofA Merrill also upgrades its price objectives for private
banks, retaining ICICI Bank Ltd as its top pick, and
HDFC Bank Ltd and Axis Bank Ltd as its
"preferred" names. All three banks have 'buy' ratings.
* "Private banks will likely continue to deliver structurally
superior earnings and RoEs, especially over the medium term,"
BofA Merrill says in a note dated Tuesday.
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