In any all-out attack by the bears, stocks across the board witness a decline on the market. And given that banks are over-owned by institutional investors, they bear the brunt in any wave of selling. But that also presents an opportunity: To look at the stocks both from a tactical as well as long-term perspective. Additionally, banking as a sector has seen a clean-up of loan books, which is a crucial part of the sector. There are no hidden NPAs any more. Of course, the cost of deposits is still an issue, but it is more of a cyclical issue which has been seen, and handled, in the past as well. So, time to take a closer look at banking stocks?
