Private-Sector Banks Face Valuation Pressures Amid Credit Growth Moderation
· Business · Moneycontrol
Private-sector banks are experiencing a moderation in credit growth as lenders prioritize deposit mobilization over aggressive loan expansion. Ladderup's Raghvendra Nath notes that while large-cap private banks are reasonably priced, mid-tier lenders require selective evaluation based on asset quality and deposit profiles. The banking sector continues to face compression in net interest margins due to competitive deposit pricing. Analysts suggest that investors should focus on individual balance-sheet strength rather than broad sector generalizations.
Why it matters
Retail and institutional investors assessing bank stocks need to weigh slowing credit growth against deposit pressures across private-sector lenders.
Read the original report — Moneycontrol
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