JP Morgan cuts Kotak Mahindra, SBI shares to 'neutral' from 'overweight

Oct 09 2013, 12:27 IST
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Shares of Kotak Mahindra Bank has been downgraded on stress in bond markets given the prospect of continued falls in short-term rates and pressures on asset quality. Shares of Kotak Mahindra Bank has been downgraded on stress in bond markets given the prospect of continued falls in short-term rates and pressures on asset quality.
SummaryPreviously 'overweight' rated shares of IndusInd Bank, Punjab National Bank also rated 'underweight'.

JP Morgan turns selective on Indian banks, citing stress in bond markets given the prospect of continued falls in short-term rates and pressures on asset quality.

The investment bank downgrades Kotak Mahindra Bank Ltd and State Bank of India (SBI) to "neutral" and Indusind Bank and Punjab National Bank to "underweight." All four stocks had previously been rated "overweight."

"Almost the entire coverage universe is facing earnings pressure from both rates and asset quality, and valuations have not adjusted for that in some cases," JP Morgan said in a note on Tuesday.

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