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Private bank stocks slump up to 21% in one month, but Gurmeet Chadha sees value. Here's why

Analysis of this story by et_markets · 12 Mar 2026, 5:22 PM IST (about 2 months ago)

BULLISH(90%)
hold
+51.5bankingfinancial services

AI Analysis

The banking sector has faced recent headwinds, with stocks falling due to inflation fears and other factors. However, the shift in regulatory focus from LDR to LCR could significantly impact credit growth and profitability.

Trading Insight

Look for long opportunities in fundamentally strong private banks, focusing on those with healthy asset quality and deposit growth, with a medium-term horizon.
Quick check: NIFTY neutral, SENSEX neutral.

Key Evidence

  • Private bank stocks have slumped up to 21% in one month, lagging Nifty 50 and BSE Sensex.
  • Gurmeet Chadha sees strong value in banking stocks.
  • Chadha cites attractive valuations as a reason for optimism.
  • A shift from LDR (Loan to Deposit Ratio) to LCR (Liquidity Coverage Ratio) could boost credit growth by 3-7%.
  • Risk flag: Continued inflation fears impacting interest rate outlook

Affected Stocks

Private Sector Banks
Positive

Market veteran sees strong value due to attractive valuations and potential credit growth boost from LDR to LCR shift.

People in this Story

G
Gurmeet Chadha

market veteran

sees strong value in private banking stocks despite recent slump

Sources and updates

Original source: et_markets
Published: 12 Mar 2026, 5:22 PM IST
Last updated on Anadi News: 12 Mar 2026, 5:58 PM IST

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Private bank stocks slump up to 21% in one month, but Gurmeet Chadha sees value. Here's why | Anadi Algo News