SECTOR TO WATCH IN 2011

BANKING

Banking sector to benefit in 2011 due to strong economy of India and since last two year banks target more branches to open specially in urban India even more hurdle to be in banking sector like competition,higher infaltion and riskmanagment also a concern.
In a report issued by "Standard and Poor" on industry report card ,India growth story a key role of strong economy lead by banking sector as in past we see global fall in economy impact on banks all over world also in Asia too but Indian banking industry stand at solid because so timely step taken by RBI help banks.
when whole world in affected by slowdown, RBI guide banks to provision higher NPA in balance sheet on loan ,also start BPLR (basic prime lending rate ) create a wealthy balance sheet in banking sector
due to higher provision in npa last year a fall in NPA because of that step taken in advance,higher interest rates also help banking margin due to ratio of deposit and landing
but few reason which still to watching banking sector are inflation and downtrend in loan due to higher interest rates affect banks profit,
investor who looking for a long term investment for1-2year in stock market must invest in banking sector in his portfolio at current price banks like State bank of India,Bank of Baroda,Idbi bank and Icicibank