India’s state-owned lenders were the best-performing bank stocks among peers in the Asia- Pacific region in the quarter ended Sept. 30, reflecting growing investor interest and stronger financials metrics. The data compiled by S&P Global Market Intelligence reported Indian Overseas Bank’s total returns rose 91.60% in the quarter, while Central Bank of India was in the second spot with a rise of 76.59%.
Prashant Kothari, Senior Investment Manager, Pictet Asset Management’s emerging equities team, said, “India Inc. will offer a rich hunting ground for international investors looking to diversify their holdings. Indian equities received substantial foreign inflows in 2023, with the market attracting net USD16 billion so far this year — representing more than half of total net inflows into global stocks. India’s stock market hit an all-time high valuation of $3.8 trillion in September, while Indian equities have outpaced their counterparts in emerging markets for some time.”
The reports stated, Nifty 50 and BSE Sensex have risen 11.06% and 9.69%, respectively, in the past six months, while the Nifty Bank index gained 7.73%. Bank credit in India has seen solid growth in recent months, with Jefferies analysts projecting it to stabilize around 13% to 14% in the short-term. The country’s economy is expected to expand 6% to 7% annually until 2026 at least, according to S&P Global Ratings.
Worst performers
Market Intelligence data shows, ten banks from East Asia ranked among the 15 worst-performing Asia- Pacific bank stocks by total returns, with the remaining slots taken by three banks from Indonesia and one each from the Philippines and Vietnam. Returns of Indonesia's PT Bank Jago Tbk and PT Bank Neo Commerce Tbk dropped 37.65% and 34.87%, respectively, in the quarter.
Seven banks in mainland China featured in the list, which was broadly in line with the performance of the stock markets there, where the Shanghai stock exchange’s SSE Composite Index fell nearly 3% and the Hang Seng Mainland Banks Index fell 11% in the third quarter.
