Encouraged by some recent economic developments in the Indian economy, Asia Pacific-focused brokerage firm CLSA has recommended buy on private banks like ICICI Axis Bank and HDFC Bank.
In its latest report, the CLSA also recommended buy on Tata Steel and Tata Motors, thanks to the improving business of these two companies.
Private sector banks ICICI Bank, HDFC Bank and Axis Bank slashed interest rates on fixed deposits by 25 to 50 basis points across maturities ranging from a 91 days to lower than 5 years.
Axis Bank slashed interest rates by 25 basis points across maturities ranging from 1 year to 18 months.
ICICI now offers a maximum interest rate of 8.75 per cent on retail term deposits. The new rate is 50 basis points lower than 9.25 per cent that it had been offering previously. The highest interest rate being provided by HDFC now is
8.75 per cent, 50 basis points lower than 9.25 per cent that had been offering previously.
However, none of these private sector lenders announced any cut in retail loans.
The private sector lenders slashed interest rate in wake of a similar move by the state-run lender State Bank of India, slashed interest rates by up to 100 basis points across several maturities as a part of its efforts to maintain profitability.
On the recent increase in the diesel price, and hacked supply of the subsidized cooking gas, the brokerage said that it was a one-off move and added that the current Centre government has limited capability to take strong decisions.