These 8 bank stocks can give 32 to 53% returns in one year, according to analysts

Many on the street believe the interest rate cycle plays a key role in how a bank’s bottom line shapes up. But, in reality, it is overall economic growth which matters most to banks. They provide the lifeline of capital to all sectors of the economy. When these sectors do well, banks have higher credit growth – a crucial parameter. Of course, parameters like net interest margin and NPAs also matter – but credit growth trumps them. Now, while NPAs have been brought under control, it is low credit offtake that is really troubling banks. Some banks pushed growth by aggressive means, but the regulator was sharp enough to restrain them. It remains to be seen what will dominate the debate: Improvement in credit offtake or cost of deposits.