India Financials Stocks Research Report By Anand Rathi

The drop in lending to the corporate sector (which has halved in FY15 from FY14) because of the capex slowdown has compelled banks tofocus on other lending avenues, primarily on the retail and SME segments. We believe that India, given its favourable demographics, has huge potential for retail lending. We thus expect the share of retail loans in lending to climb from 19% in FY14 to 24% over the next four years. DCB Bank and Federal Bank are our top picks among private banks and Vijaya Bank among public sector ones, given their operations are in retail-rich areas.

India Financials_SU_09 April 2015