Bank Stocks Outlook for the week – 18 to 22.08.2014
( www.rupeedesk.in )
Bank stocks are likely to take opening cues for next week from Prime Minister Narendra
Modi's is likely to rollout a scheme aimed at providing bank accounts to 150 mln people
by 2015. The features of scheme include 5,000 rupees overdraft facility for accounts,
which are linked to Aadhar-linked and inbuilt accidental insurance cover of 100,000
rupees.
The plan to allow overdraft facility is seen as added burden on banks, especially stateowned
banks, already saddled with non-performing assets.
Apart from comments to growth and inflation, the ambitious financial inclusion scheme
is widely eyed as reaching far off corners of the country is an added cost for banks. Plus
the plans on overdraft is a major issue.
Apart from the Independence Day speech, banks stocks are likely to track broader
markets, which are seen moving in narrow range in the absence of major triggers.
Among specific companies, Dhanlaxmi Bank will be in focus on Monday as the private
sector lender, after market hours Friday, reported a 15.4% on-year fall in Apr-Jun net profit at 30.3 mln rupees.
