As lockdown remains in force and the recently announced fiscal stimulus is not seen as impressive, there is feared still worse impact on Indian banks. Also, there has been doled out Rs. 3 lakh crore package for SMEs that will avoid them to be categorized as NPAs and further extension of loan moratorium until August 2020, the credit cost and slippage for FY22E shall be increased as per Credit Suisse.
And on account of it, global brokerage firm Credit Suisse has cut FY21/FY22 earnings as well as target price of banks has been cut by 10-20%.
Here are the new earnings and target price for top banks in India:
|Bank||Rating||Previous Target price||New Target Price|
|Kotak Mahindra Bank||Neutral||1250||1150|