Over the next quarter will show banks net income margins come under much higher pressure than ever seen.
The higher interest rates on savings accounts and the higher fd rates while credit growth has been slowing down is the main cause for this.
Even the forecasted growth for india's GDP has come down to <7%..
This is reflected in the fact that the bankex has dropped significantly down.
These pressures should be seen in the q3 results which should be announced soon.
The only silver lining for these stocks and this sector is the reversal of the interest rate cycle by the RBI in January.
Let's hope that happens.. In the meantime stay away from bank stocks.
Be smart
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This is a valuable stock tip.... I need to reshuffle my portfolio. But I think still banks will keep a close watch on each others interest rates and will move only few basis points. Good to watch who touches 9% first.
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