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    Asad Shaikh in News

    23 Feb 11:30 AM


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    Goldman downgrades ratings of SBI, ICICI Bank, Yes Bank, warns of stronger headwinds

    Global brokerage firm Goldman Sachs has downgraded banking giants State Bank of India, ICICI Bank and Yes Bank, saying that the Goldilocks period of strong growth and strong or visible profitability was over for the financial sector for the near term. It added that headwinds were intensifying for the Indian financial services sector.

    Major challenges include rising pressure on the cost of funds, due to structural funding challenges, and growing concerns on rising consumer leverage, which poses potential asset quality challenges. In unsecured lending, particularly, this could lead to higher credit costs. Further, banks could feel the pressure on operating costs due to elevated wage inflation, and also need to expand the distribution network for future deposit growth, said Goldman Sachs.

    Source - Money Control