Bank stocks fall up to 40% since Budget. Is it a good time to buy?

The overall economic slowdown and the surcharge-related concerns for foreign portfolio investors (FPIs) amid weak global cues cast its shadow on the market sentiment, especially the banking stocks that have taken a hard knock since the presentation of the Union Budget on July 5. Given the developments, analysts say the road ahead for these stocks remains challenging till there is a pick-up in the economic sentiment and clarity on government policy.

“There are legacy issues with banks, especially the ones in the public sector domain. One cannot paint the entire sector with the same brush. The non-performing loan issue is