Contents
At the crossroads 3
Financial stocks have outperformed the broader market recently on expectations of big-ticket reforms.
We believe the sector will likely see slower loan and earnings growth, and rising NPLs. The
implementation of reforms should support valuations.
3
Indian banking sector – two scenarios 3
The storm has passed, the damage is done 4
Non-performing loans – calm before storm 7
Reforms – safety net for sector valuations 11
Company profiles 12
Axis Bank 13
Bank of Baroda 18
Bank of India 26
Canara Bank 34
HDFC Bank 41
Housing Devl Finance 46
ICICI Bank 54
Punjab National Bank 60
State Bank of India 67
Union Bank of India 76