UBS has written an interesting report on banks. The firm remains constructive on the space but have outlined some potential downside risks. Vishal Goyal, Head of India Research and Banks Analyst at UBS Securities India discussed this further.
Banks fundamentally seem stronger than they have been in past because of cleaned up balancesheet on the corporate side and therefore risk from the corporate end seems lower, he said.
In price, there is growth expectation, there is stable credit cost expectation, there is margin improving expectation, so if one of those expectations disappoint, one will see a stock price disappointment, he added.
For the full interview, watch the accompanying video
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