Global View on Indian Banks: Cautious Optimism

Investors in Tokyo and Singapore are showing selective interest in Indian bank stocks. While they see limited upside for HDFC Bank after its strong performance, State Bank of India (SBI) and quality PSU banks like Bank of Baroda are favored for their asset quality and potential growth. ICICI Bank continues to garner confidence, but concerns linger over large-cap banks’ asset trends. Mid-sized banks face hesitancy, except Federal Bank, which remains a preferred choice. Despite challenges, Axis Bank’s steady performance appeals to some. Investors remain watchful amid evolving market dynamics.