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Bank stocks may ease next week on profit booking following the recent rise over the last few sessions, Likely profit sales in the broad market are also expected to dampen buying interest in bank stocks. Rising concerns over banks' asset quality, especially of state-owned banks, continues to remain a major concern for the market as it will have a detrimental impact not just on profitability but also on capital position for banks.
Although private banks like ICICI Bank, HDFC Bank, Axis Bank, YES Bank, Kotak Mahindra Bank and IndusInd Bank are faring better than their public sector peers on this front, their older private counterparts have been facing the brunt of rising non-performing assets.
Lakshmi Vilas Bank will remain under the market scanner as the RBI has appointed additional directors to the board in a bid to safeguard the interests of the customers, which has led to speculation on why such a decision has been taken by the central bank. Market is also eyeing news on capital infusion by the government into state - owned banks like State Bank of India, Indian Overseas Bank, Dena Bank and Central Bank of India.
