Credit Suisse cuts target for top Indian banks due to increased slippages, credit costs
Updated : 2020-05-28 15:42:31
The extensions of coronavirus-induced lockdown and unimpressive fiscal stimulus would lead to further increase in slippages and credit costs for the Indian banks. With the extended moratorium and Rs 3 lakh crore government package for SMEs, which would help in pushing back SME NPAs, will also increase slippage and credit costs for FY22E, Credit Suisse said. Due to increased slippage and credit costs, the brokerage has cut FY21/22E earnings and target price of banks by 10-20 percent.