Goldman Sachs Dumps on Indian Banks with Sell Ratings

Goldman Sachs has initiated coverage on 14 Indian banks and adopted a cautious stance on the banking sector. The brokerage has given a SELL rating to four banking stocks, including RBL Bank, Yes Bank, Bank of Baroda, and Punjab National Bank (PNB). Goldman Sachs said that despite supportive GDP growth and a favorable monetary environment over the past five years, valuations of private banks have declined.

During this period, foreign institutional investors (FIIs) reduced their holdings in the Indian financial sector by around USD 26 billion. RBL Bank has been given a SELL rating with a target price of Rs 285, indicating a potential downside of around 27% from the current level.

The brokerage also maintained a negative view on Yes Bank, assigning a SELL rating with a target price of Rs 22. Bank of Baroda and Punjab National Bank (PNB) have also received a SELL rating from Goldman Sachs, with target prices of Rs 245 and Rs 103 respectively.