{"id":11716,"date":"2023-01-18T15:31:47","date_gmt":"2023-01-18T10:01:47","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=11716"},"modified":"2023-01-18T15:32:15","modified_gmt":"2023-01-18T10:02:15","slug":"banking-industry-2022-performance-and-2023-expectations","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/banking-industry-2022-performance-and-2023-expectations\/","title":{"rendered":"Banking Industry: 2022 Performance And 2023 Expectations"},"content":{"rendered":"\n<p>As the pandemic subsides, the Indian economy is expected to bounce back with resilience. With easing inflation, several industries are poised to thrive, particularly those related to domestic consumption, <a href=\"https:\/\/www.tickertape.in\/blog\/effective-money-saving-travel-hacks\/\">travel<\/a>, and hospitality. Additionally, the banking sector has demonstrated strength, with rising credit growth and much more robust balance sheets.&nbsp;<\/p>\n\n\n\n<p>To get a sneak peek into the banking sector, how it performed in 2022, and what to expect in 2023, we asked some questions to our banking experts Sonam Srivastava from <a href=\"https:\/\/wrightresearch.smallcase.com\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=sonamsrivastava\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Wright Research<\/a> and Anmol Das from <a href=\"https:\/\/tejimandi.smallcase.com\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=anmdas\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Teji Mandi<\/a>. Let&#8217;s dive into it.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/banking-industry-2022-performance-and-2023-expectations\/#Banking-performance-in-2022\" title=\"Banking performance in 2022\">Banking performance in 2022<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/banking-industry-2022-performance-and-2023-expectations\/#Outperformedunderperformed-banking-stocks-of-2022\" title=\"Outperformed\/underperformed banking stocks of 2022\">Outperformed\/underperformed banking stocks of 2022<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/banking-industry-2022-performance-and-2023-expectations\/#What-to-expect-in-2023\" title=\"What to expect in 2023?\">What to expect in 2023?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/banking-industry-2022-performance-and-2023-expectations\/#Use-Scorecards-to-analyse-stocks-quicker\" title=\"Use Scorecards to analyse stocks quicker\">Use Scorecards to analyse stocks quicker<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Banking-performance-in-2022\"><\/span>Banking performance in 2022<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When asked about the banking sector performance in 2022, analyst Anmol Das said, &#8220;Banking is my favourite sector, and I maintain a tight watch on it. The banking sector outperformed all sectors in 2022, especially the PSU banking space, which has rallied somewhere between 65 and 75% on a year-on-year level, with many smaller PSU banks giving more than 100% returns over the last year.&#8221;<\/p>\n\n\n\n<p>Sonam Srivastava mentioned that PSU Bank is going through a cycle of good loan growth, NII growth, NIM growth, and balance sheet cleanup, giving investors confidence. She also said that PSU&#8217;s banking stocks had outperformed their private sector peers as asset quality, corporate loan portfolios, and earnings have improved. Higher margins will support PSB&#8217;s strong performance, continued credit growth and improved trade debt over the next few years. Credit growth is sustainable and credit costs for these banks will remain low.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Outperformedunderperformed-banking-stocks-of-2022\"><\/span>Outperformed\/underperformed banking stocks of 2022<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Talking about stocks, Anmol Das mentioned that the PSU banks have outperformed like anything, with the likes of <a href=\"https:\/\/www.tickertape.in\/stocks\/bank-of-baroda-BOB?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=anmdas\" target=\"_blank\" rel=\"noreferrer noopener\">Bank of Baroda<\/a>, <a href=\"https:\/\/www.tickertape.in\/stocks\/union-bank-of-india-UNBK?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=anmdas\" target=\"_blank\" rel=\"noreferrer noopener\">Union Bank of India<\/a>, <a href=\"https:\/\/www.tickertape.in\/stocks\/bank-of-india-BOI?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=anmdas\" target=\"_blank\" rel=\"noreferrer noopener\">Bank of India<\/a> and <a href=\"https:\/\/www.tickertape.in\/stocks\/indian-bank-INBA?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=anmdas\" target=\"_blank\" rel=\"noreferrer noopener\">Indian Bank<\/a> among the larger banks outperforming more than 100% returns. Among the smaller PSU banks, <a href=\"https:\/\/www.tickertape.in\/stocks\/punjab-and-sind-bank-PUNA?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=anmdas\" target=\"_blank\" rel=\"noreferrer noopener\">Punjab &amp; Sind Bank<\/a>, <a href=\"https:\/\/www.tickertape.in\/stocks\/jammu-and-kashmir-bank-JKBKhttps:\/\/www.tickertape.in\/stocks\/jammu-and-kashmir-bank-JKBK?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=anmdas\" target=\"_blank\" rel=\"noreferrer noopener\">J&amp;K Bank<\/a>, and <a href=\"https:\/\/www.tickertape.in\/stocks\/uco-bank-UCBK?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=anmdas\" target=\"_blank\" rel=\"noreferrer noopener\">UCO Bank<\/a> have outperformed.<\/p>\n\n\n\n<p>He mentioned <a href=\"https:\/\/www.tickertape.in\/stocks\/kotak-mahindra-bank-KTKM?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=anmdas\" target=\"_blank\" rel=\"noreferrer noopener\">Kotak Mahindra Bank<\/a>, <a href=\"https:\/\/www.tickertape.in\/stocks\/bandhan-bank-BANH\" target=\"_blank\" rel=\"noreferrer noopener\">Bandhan Bank<\/a> and <a href=\"https:\/\/www.tickertape.in\/stocks\/rbl-bank-RATB\" target=\"_blank\" rel=\"noreferrer noopener\">RBL Bank<\/a> in his underperformers list. He stated that the higher valuations for the last several years could be a reason for their underperformance. Several other private small finance banks could have fared better against larger peers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-to-expect-in-2023\"><\/span>What to expect in 2023?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Most of the PSU banks will keep performing well depending on the asset quality improvement of the undervalued banks, with higher conviction on the banks with business of more than Rs. 10 lakh cr., i.e., smaller than <a href=\"https:\/\/www.tickertape.in\/stocks\/state-bank-of-india-SBI?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=anmdas\" target=\"_blank\" rel=\"noreferrer noopener\">State Bank of India<\/a> but larger than <a href=\"https:\/\/www.tickertape.in\/stocks\/central-bank-of-india-CBI?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=anmdas\" target=\"_blank\" rel=\"noreferrer noopener\">Central Bank of India<\/a>, said Anmol Das.<\/p>\n\n\n\n<p>He also mentioned that the six large PSU banks are valued slightly below P\/B of 1.0x and have RoA below 1.0x. Still, how they have improved their asset quality after each quarter makes us confident of higher valuations backed by better performance and higher returns. At the same time, the larger size makes them more stable than smaller banks.<\/p>\n\n\n\n<p>Sonam Srivastava believed that the banking sector would flourish in a rising <a href=\"https:\/\/www.tickertape.in\/blog\/flat-interest-rate-vs-reducing-balance-interest-rate\/\">interest rate<\/a> environment. Along with the PSU banking sector, she said with the budget in view, they are excited about the infrastructure segment, especially stocks linked to defence and railways. There are other industries like sugar, fertilisers, textiles, and paper which are flourishing due to subsidy-linked announcements.<\/p>\n\n\n\n<p>Apart from these, capital goods space and private investment remain strong in India despite the global <a href=\"https:\/\/www.tickertape.in\/blog\/volatility\/\">volatility<\/a>. The government is incentivising domestic manufacturing and defence indigenisation, and the private sector is seeing capex in the energy transformation, emerging tech and warehousing. Based on these themes, Sonam Srivastava and the team have picked some stocks, including <a href=\"https:\/\/www.tickertape.in\/stocks\/schneider-electric-infrastructure-SEIN?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=sonamsrivastava\" target=\"_blank\" rel=\"noreferrer noopener\">Schneider Electric Infrastructure<\/a>, <a href=\"https:\/\/www.tickertape.in\/stocks\/triveni-engineering-and-industries-TREI?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=sonamsrivastava\" target=\"_blank\" rel=\"noreferrer noopener\">Triveni Engineering and Industries<\/a>, <a href=\"https:\/\/www.tickertape.in\/stocks\/bank-of-baroda-BOB?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=sonamsrivastava\" target=\"_blank\" rel=\"noreferrer noopener\">Bank of Baroda<\/a>, <a href=\"https:\/\/www.tickertape.in\/stocks\/deepak-fertilisers-and-petrochemicals-corp-DPFE?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=sonamsrivastava\" target=\"_blank\" rel=\"noreferrer noopener\">Deepak Fertilisers and Petrochemicals Corp<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Use-Scorecards-to-analyse-stocks-quicker\"><\/span>Use Scorecards to analyse stocks quicker<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before investing, it is always wise to perform thorough research on investment avenues. For this purpose, #TickertapeHaiNa! Tickertape\u2019s <a href=\"https:\/\/www.tickertape.in\/stocks\/itc-ITC?utm_source=blog&amp;utm_medium=gart\" target=\"_blank\" rel=\"noreferrer noopener\">Asset Pages<\/a> have a handy Scorecard, which helps in quick analysis of the viability of an investment. You can get <a href=\"https:\/\/www.tickertape.in\/blog\/introducing-scorecard-stock-analysis-got-quicker-and-better-with-quantitative-insights\/\">qualitative and quantitative data<\/a> about any asset on this page.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/12\/Screenshot-2022-12-28-at-1.50.19-PM.png\" alt=\"\"\/><\/figure><\/div>\n\n\n\n<p>You can check Performance, Valuation, Growth, Profitability scores, and entry points based on fundamentals and technicals. You can also analyse the red flags on a stock, which is a combination of promoter pledged holding, Additional Surveillance Measures (ASM) and Graded Surveillance Measures (GSM) lists, probability of default, and unsolicited messages.&nbsp;<\/p>\n\n\n\n<p>Secure your investments with thorough research beforehand and\/or consult a financial advisor for guidance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Indian banking sector in 2022 has gained strength and is expected to flourish in the rising interest rates environment. Let\u2019s look at experts\u2019 views on this.<\/p>\n","protected":false},"author":90,"featured_media":11719,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[1721,1749],"tags":[],"acf":[],"modified_by":"Anjali Chourasiya","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2023\/01\/18-Jan-2023-Banking-Sector-in-.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/11716"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/90"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=11716"}],"version-history":[{"count":3,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/11716\/revisions"}],"predecessor-version":[{"id":11720,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/11716\/revisions\/11720"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/11719"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=11716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=11716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=11716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}