Credit Suisse Cuts Target Price Of Banks By 10-20%

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.

Credit Suisse Cuts Target Price Of Banks By 10-20%

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
HDFC Bank	Outperform	1280	1100
ICICI Bank	Outperform	450	390
Axis Bank	Outperform	520	450
SBI	Outperform	250	200
Kotak Mahindra Bank	Neutral	1250	1150
IndusInd Bank	Underperform	430	350

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