Indian Banks Margins set to Collapse – SELL

In a faster than expected surprise, Morgan Stanley pushed the report on Indian Banks saying that Margins are headed for a Collapse and Downgraded the Indian PSU Banking Space to Underweight. Morgan expects the NIM to fall between 40-70 bps.

The pre-provision operating profit (PPOP) will drop to single digits after the 40%+ growth in F11. PSU Bank F12E multiples have (more…)