Headwinds emerging for banks, says Goldman

The Indian banking and financial sector stocks, which have been performing well in recent years, may face challenges ahead. Rising pressure on the cost of funds, concerns about unsecured retail loans, and increasing operational costs could hinder the growth of Indian lenders in the coming years. Goldman Sachs has downgraded SBI, ICICI Bank, and Yes Bank, but maintained a 'buy' rating on HDFC Bank and upgraded Bajaj Finance to a 'neutral' rating from 'sell'.