Positive on the banking sector: ICICI Direct

Pankaj Pandey, Head of Research, ICICI Direct in a chat with ET Now talks about the banking sector given the announcement of the credit policy.

What did you take away from the credit policy and what’s the view on banks right now?

Well in terms of rate hikes, it is more or less on the expected lines and for the banking sector, things are shaping out quite well, especially after the budget wherein the government did not unleash too heavy a borrowing programme and subsequent to that, yields have really been comfortable for most of the banks wherein we are not expecting major treasury losses to be booked by most of the banks.

In that sense, going forward if RBI is projecting a credit growth of about 20% odd, banks would be looking at about 22-23% odd kind of a credit growth, which really augurs well for them, so things are shaping out pretty well and we are quite positive on the banking sector.