Indian Banks: Screening for Investment Ideas
Report by Galliano's Financials Research
Victor Galliano identifies 3 banks that can weather the expected worsening of credit quality in the coming quarters - he highlights Axis Bank as a restructuring and earnings recovery story and HDFC Bank for its high quality balance sheet and premium returns, which are not yet fully reflected in valuations. Victor also considers State Bank of India as an attractive value play, despite its lighter core capital ratio. Banks to avoid - Canara Bank (value trap) and Bandhan Bank (large micro-finance and SME credit risk exposure).