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Business

Updated on: Saturday, June 01, 2019, 02:32 PM IST

Goldman Sachs ups select PSU banks’ rating

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MUMBAI : Goldman Sachs has upgraded shares of select public sector banks, as it said improved macro economic environment and potential reforms post the general elections could gradually reduce their stressed loans.

“A sharp correction in current account (deficit), falling inflation, reforms in power and road space, as well as deleveraging efforts by corporate India could lead to reduction in stressed assets, revival of investment activity, and improvement in the earnings trajectory for banks,” Goldman Sachs said in a report.

“PSUs, in particular, may see NPLs (non-performing loans) fall by 3% in FY16, after increasing 17.5% in FY15,” it added. It has upgraded shares of Punjab National Bank to ‘neutral’ from ‘sell’ and raised its target price to 710 rupees from 510 rupees.

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State Bank of India too has been upgraded to ‘buy’ from ‘neutral’, and its target price has been increased to 2,080 rupees from 1,440 rupees.

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Published on: Friday, March 28, 2014, 12:08 AM IST
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