Indian banks are entering a phase of cautious optimism with valuations seen as reasonable and quality emerging as the key differentiator, says Jefferies’ Prakhar Sharma. Credit and deposit growth are steady at around 10%, aided by policy support, while asset quality concerns appear temporary. “Good, high-quality stocks that deliver high teens RoEs are trading between 15–16 times earnings… in some cases even at a discount to large global banks,” Sharma told CNBC-TV18.
