Homevideos Newsmarket Newsstocks News

    Prefer larger banks that can withstand COVID-related challenges: Kotak Institutional Equities

    videos | IST

    Prefer larger banks that can withstand COVID-related challenges: Kotak Institutional Equities

    Mini

    Kotak Institutional Equities will prefer larger banks that can withstand COVID-related challenges, MB Mahesh, an analyst at the broking arm of the Kotak Mahindra Group, told CNBC-TV18.

    Kotak Institutional Equities will prefer larger banks that can withstand COVID-related challenges, MB Mahesh, an analyst at the broking arm of the Kotak Mahindra Group, told CNBC-TV18.
    “The way you see COVID unfolding from an impact perspective, you will see a situation where the asset quality concerns are reasonably higher at the self-employed segment, a bit more on segments where there is a reasonable amount of cash collection which needs to be done. So, in that context, it’s hard to build a position around portfolios where those segments are risky and hence those lenders who have those portfolio to be risky as well. So it makes a lot more sense to remain with the top tier names,” he said.
    According to him, if housing does well, Axis Bank and ICICI Bank will not surprise negatively. “ICICI and Axis Bank have a relatively higher share of loan book which is sitting on the retail side and more specifically towards secured loan book which is housing and housing as a portfolio should hold up far better. Therefore, this time around it’s quite possible that if housing does well then ICICI and Axis Bank should not surprise negatively as much as they have done in recent years on the negative side. So that’s why we have a stronger positive rating on these two banks,” said Mahesh.
    For more details, watch the video
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    next story

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng