Dean Kim cautious on private banks, except ICICI Bank

Dean Kim, Head of Global Research Product at William O’Neil + Co, maintains a cautious stance on private banks, but favours ICICI Bank within the sector.

From a technical standpoint, state-owned banks appear promising, he said.

“Federal Bank, State Bank of India, and Bank of Maharashtra are actionable now. We are keeping an eye on the private banks. ICICI is the best one amongst the group,” he said.

He noted that both India and other emerging markets are performing well.

Contrary to Kim, who bases his decisions on technical charts, Rikin Shah, Vice President at IIFL Securities, holds a positive outlook on leading private banking stocks such as Axis Bank, HDFC Bank, and IndusInd Bank, attributing their strength to solid fundamentals in the medium term.

In a separate interview with CNBC-TV18, Shah highlighted that large private banks are expanding their deposits at a much faster rate than the overall banking system.

Also Read: Now ICICI Bank’s NRI customers can make UPI payments in India using their international mobile numbers

“We are looking at system deposit growth of 17-18% whereas the public sector undertaking (PSU) banks are growing only at 11%,” he added.

Shah has a buy rating on HDFC Bank for the medium term.

Also Read: These banks are offering fixed deposit interest rates of up to 9.1%: Should one invest in FDs now?

For the entire interview, watch the accompanying video

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