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Thursday, July 05, 2007

$$ DreamGains !! $$ Q1FY2008 Banking earnings preview: Sharekhan Special dated July 05, 2007

 

Sharekhan Special
[July 05, 2007] Please see the attachment for details

Sharekhan
www.sharekhan.com

Summary of Contents

SHAREKHAN SPECIAL

Q1FY2008 Banking earnings preview

We expect the first quarter numbers from the banking industry to be mixed as the net interest margins (NIMs) and provisions are expected to vary across banks. With liquidity not being a concern for the major part of this quarter, we expect most of the banks to have had a sound operational quarter. 

With inflation having moderated to 4% levels and less pressure on deposit rates, we feel that interest rates are likely to remain stable in the medium term, thereby providing a good operational environment for banks going forward. Our top picks in the private bank space remain HDFC Bank and UTI Bank while in the public sector we like State Bank of India and Bank of Baroda.   

Regards,
The Sharekhan Research Team

myaccount@sharekhan.com

 

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