Before the meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), the banking sector has once again become the center of discussion among investors. Analysts say that a possible rise can be seen in banking stocks, especially in the shares of those banks whose balance sheet is strong and credit growth is stable.
Important points of the meeting
In the MPC meeting, decisions will be taken mainly on repo rate and other monetary policies. Repo rate directly affects the lending and deposit rates of banks. Therefore, these policies have a direct impact on the banking sector. Experts say that the results of the meeting can bring major changes in the banking sector.
Will keep an eye on these shares
HDFC Bank. In fact, HDFC Bank has won the trust of investors due to its strong asset quality and continuous growth. Its operating performance makes it better among private banks.
ICICI Bank. ICICI Bank, which has performed better in digital services and retail loans, is ahead in credit growth. Analysts consider it a strong investment option.
State Bank of India (SBI). The country’s largest public sector bank SBI has attracted investors through its credit demand and policy stability. Its major role in the implementation of government schemes makes it stronger.
Kotak Mahindra Bank. This bank remains attractive for investors due to better performance in retail and SME loan segments.
The share of banking sector is increasing
According to DGCA data, the share of banking sector is increasing in the Indian market. Private banks have gained market leadership through their digital strategies and products, while public sector banks have boosted credit demand under government schemes.
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