InvestorQ : Why has Bank of America downgraded banks like ICICI Bank, SBI and IndusInd? What about HDFC Bank?
Dia Deshpande made post

Why has Bank of America downgraded banks like ICICI Bank, SBI and IndusInd? What about HDFC Bank?

Answer
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Ria Jain answered.
4 months ago


Indian banks have been under a cloud ever since Moody’s downgraded banks, per se. Now the latest comes from BOFA. The Bank of America has turned bearish on India banks and has downgraded ICICI Bank, SBI and IndusInd Bank with only HDFC Bank remaining in its Buy list. While the first three banks have been downgraded to Neutral, HDFC Bank has been retained as Buy with reduce d price target. BOFA believes the stress for Indian banks could come from retail NPAs and the cycle could last all the way through FY22. That is likely to be exacerbated by the lockdown. The Bank Nifty has already been among the worst performers and has corrected much deeper than the Nifty index.