Which bank stocks to buy? Here's what analysts say

According to analysts’ consensus collated by Stock Reports Plus, more than 80% of banks in the index have been given a ‘Strong Buy/Buy’ recommendation. The promising credit growth performance in the month of July has been one of the contributing factors to this bullish stance. Stock Reports Plus, powered by Refinitiv, undertakes detailed company analysis for all 4,000+ listed stocks. The research report is divided into five key components i.e. earnings, fundamentals, relative valuation, risk and price momentum. Each component is assigned a score on a scale of 1-10 (10 being awarded to the most favorable). Thereafter, an average score indicating the overall outlook of the stock is calculated by taking a simple average of the above-mentioned component ratings distributed normally. The report also contains analysts’ forecasts and trend analysis for each component to help you make better investment decisions.SR+ Reports are complimentary offering to ETPrime members. Click here to know more.According to RBI, credit to agriculture and allied activities continued to perform well, registering an accelerated growth of 12.4 per cent in July 2021 as compared to 5.4 per cent in July 2020. Personal loans registered an accelerated growth of 11.2 per cent in July 2021 as compared to 9.0 per cent a year ago, primarily due to higher growth in ‘loans against gold jewellery’ and ‘vehicle loans’. However, credit growth to industry remained subdued at 1 per cent in July 2021 vis-à-vis 0.9 per cent in July 2020. Credit growth to the services sector slowed to 2.7 per cent in July 2021 from 12.2 per cent in July 2020, mainly due to deceleration in credit growth to ‘NBFCs’, and ‘commercial real estate’.Below is a list of average scores assigned to all banks in Bank Nifty. The list shows mean recommendations from all analysts covering these stocks. The recommendations are presented on a five point standardized scale - strong buy, buy, hold, reduce and sell. Please note, user discretion is advised before making any investment decisions. 86035128

from Economic Times https://ift.tt/3BJazhg