New Delhi, Dec. 5 -- Indian bank stocks are waiting for their moment in the sun. After a muted performance in 2024, these stocks are positioning for a potential rebound as monetary and fiscal policy easing is expected in the second half of the fiscal year (H2FY25).

In fact, investor sentiment turned bullish on Wednesday ahead of the Reserve Bank of India's (RBI) monetary policy meeting on Friday, with speculation around a possible reduction in the cash reserve ratio (CRR). The Nifty Bank index climbed over 1%, led by a 2.1% jump in HDFC Bank shares to Rs.1,865 apiece.

However, market experts caution that only banks with robust liability franchises and superior credit extension capabilities are poised to take full advantage of the upcomi...