Midcap Banks News Today

Post 2015 and then again in 2018, RBI did a strong rejig in various banking policies, right from capital adequacy to the operational matrix were tightened. The first set of banks which street took note of were larger private sector banks than PSU banks. There is another set of banks, which dont have the distribution reach which large private banks have, but when it comes to ownership they are not the same as the PSU banks. They have very different hybrid kinds of ownership, a sort of quasi priva...

“We like pharma as a sector because we think there is earning resilience in the sector. And more importantly, the sector is coming out of two years or three years of underperformance and business challenges. And now a lot of those headwinds which the sector faced has turned into tailwinds.”

“In the pharmaceuticals segment, every company seems to be a different sector in itself. We are very optimistic in the pharmaceutical manufacturing or CDMO space where we see a multi-year scalable opportunity for the Indian companies. On the generic side, we are very choosy. We have exposure in limited names.”

“Axis Bank and ICICI Bank are better placed because they do not have those merger issues to deal with. In the near term, because HDFC Bank underperformed so much, we could see some outperformance, but longer term, I would prefer Axis or ICICI. Kotak, despite the severe underperformance, still is much more expensive than all the other banks.”