Citi warns of West Asia risks for Indian banks, picks HDFC, ICICI, RBL

• Global brokerage Citi prefers HDFC Bank, ICICI Bank, and RBL Bank among Indian banking stocks.
• Rising tensions in West Asia pose fresh macro risks for India's banking sector, despite its current strength.
• Potential risks include higher crude oil prices, trade disruptions, FX volatility, and a widening current account deficit.
• A prolonged conflict could impact asset quality, tighten liquidity, increase market risk, and slow credit growth.
• Private sector banks are considered most defensive, followed by public sector banks, while NBFCs appear more vulnerable.