From bond yields to new accounting norms, banks face multiple headwinds

Working capital loans and loans to small businesses, apart from healthy retail loans and a possible revival in capital expansion is expected to help banks this year

A lot has gone in favour of the banking stocks despite the sector reeling under the pressure of bad loans, especially since mid-2015. Notwithstanding this, the CNX Nifty Bank index has been on an uptrend all though this turbulence, gaining 43 per cent as compared to the Nifty and the Sensex, which posted a 28-29 per cent return. But will this party last in 2018? The index, so far, has had a muted start and much of it depends on how the earnings pan out for the year.

The earnings season, which kick-starts this week, will be closely monitored to assess