Indian bank stocks rise; BofA sees 'attractive' valuations compared to other sectors

Bank of Baroda

03/12/2024 08:06

Dec 3 (Reuters) - ** India's index of state-owned banks
 .NIFTYPSU  rises 2.3%, topping sectoral gainers
    ** BofA Securities reiterates "buy" on Bank of Baroda
 BOB.NS  and Union Bank  UNBK.NS ; BOB rises 3%, UNBK up 4%,
leading gains in the sub-index
    ** The relative valuations in India's banks, especially
state-owned banks, are quite attractive compared to other
sectors, BofA says
    ** The superior earnings delivery at state-owned lenders in
the September quarter compared to private banks has attracted
investor interest, it says
    ** Among private banks, BofA identifies Axis Bank  AXBK.NS 
and ICICI Bank  ICBK.NS  as top picks, expecting margin gains
from a "shallow rate cut cycle"
    ** Says AXBK offers the best relative risk-reward among
private banks
    ** AXBK gains 2%, second-biggest gainer in private bank
index  .NIFPVTBNK , which is up 0.9%; ICBK up by 0.4%

(Reporting by Bharath Rajeswaran in Bengaluru)
((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))