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JPMorgan cuts Kotak Mahindra, SBI to 'neutral'

Downgrades PNB, IndusInd Bank to 'underweight'

Reuters

JPMorgan turned selective on Indian banks, citing stress in bond markets given the prospect of continued falls in short-term rates and pressures on asset quality.

The investment bank downgraded Kotak Mahindra Bank Ltd and State Bank of India Ltd to "neutral" and IndusInd Bank Ltd and Punjab National Bank Ltd to "underweight." All four stocks had previously been rated "overweight."

"Almost the entire coverage universe is facing earnings pressure from both rates and asset quality, and valuations have not adjusted for that in some cases," JPMorgan said in a note on Tuesday.

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First Published: Oct 09 2013 | 10:48 AM IST

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