India's banking sector appears well positioned to support the next phase of the equity market rally as improving credit growth, easing deposit pressures and stable asset quality create a favourable operating environment, according to Pankaj Pandey, Head of Research at ICICI Securities.
Speaking to ET Now, Pandey said the concerns that weighed on the banking sector over the past year are gradually fading. Lower bond yields, easing foreign investor selling and improving liquidity conditions are expected to support both private and public sector banks.
