The banking and financial sector is among the worst hit in the current downturn. While the Nifty50 has declined 27.7 per cent, the Nifty Bank index has nosedived 40.1 per cent over the past three months.
In a report issued on April 15, Macquarie Research cut its earnings per share estimates for private banks by 35-40 per cent and reduced its target prices for private banks by 45 per cent and for public-sector banks by 47 per cent.
With economic growth poised to slow down — the International Monetary Fund has cut India’s GDP growth estimate to 1.9 per cent for 2020-21