INSUBCONTINENT EXCLUSIVE:
Global financial services firm Morgan Stanley believes Calendar 2020 will be similar to last year, with larger banks gaining more market
shares.
Struggling lenders will continue to be weak due to asset quality issues, it said
On Friday, the foreign brokerage slashed the target price for YES Bank to Rs 25
traded nearly 1 per cent up at Rs 47.75 at around 10.10 am (IST)
The private lender's board is meeting later on Friday to weigh options for fund raising.
In the base case scenario, Morgan Stanley has
assumed a capital raising of $2.1 billion at Rs 60
capital raising, it has changed the price assumption for capital raising scenarios
Morgan Stanley said.
The brokerage also remained underweight on RBL Bank and IDFC Bank with price targets of Rs 240 and Rs 24,
respectively.
On the other hand, it turned overweight on ICICI Bank, HDFC Bank, Kotak Mahindra Bank and IndusInd Bank with price targets of
Rs 775, Rs 1,700, Rs 1,925 and Rs 1,800, respectively.
Morgan Stanley also said mid-sized banks would continue to struggle given higher
non-performing loans (NPL)