Alok Singh Predicts Banks Could Earn Higher Ratings on Strong Fundamentals

Alok Singh, chief investment officer of Bank of India Mutual Fund, says banks are likely to receive a re-rating because their fundamentals have improved. Low levels of non‑performing assets, solid returns and steady loan growth are the main drivers. Singh adds that upcoming policy announcements and better corporate earnings should calm worries about net interest margins and foreign currency non‑resident (FCNR) inflows. He points to the capital goods, banking and metals sectors as sources of stronger earnings momentum. The outlook suggests that, if policy support continues, banks could see higher valuations and investors may shift more money into the sector.