Rediff News
All News

NewsApp (Free)

Read news as it happens
Download NewsApp  » Business » BofA Merrill turns positive on Indian banks

BofA Merrill turns positive on Indian banks

xTo get such articles in your inbox
Last updated on: January 08, 2013 14:46 IST

Indian flagBank of America Merrill Lynch upgraded State Bank of India, Bank of Baroda, and Oriental Bank of Commerce Ltd to 'buy'.

The investment bank says upgrades come on the back of a steepening bond yield curve in the anticipation of Reserve Bank of India rate cuts, stronger-than-expected loan recoveries, and reduced quality pressures.

BofA Merrill also upgrades its price objectives for private banks, retaining ICICI Bank Ltd as its top pick, and HDFC Bank Ltd and Axis Bank Ltd as its 'preferred' names.

All three banks have 'buy' ratings.

"Private banks will likely continue to deliver structurally superior earnings and RoEs, especially over the medium term," BofA Merrill says in a note dated Tuesday.

Abhishek Vishnoi in Mumbai
© Copyright 2013 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.