CLSA's Top Picks in Banking Sector: ICICI Bank, SBI, and HDFC Bank

CLSA recommends ICICI Bank, State Bank of India, and Bandhan Bank as top picks in the banking sector. CLSA maintains Outperform on HDFC Bank with a revised target of Rs 2,300, implying an 18% upside, and Outperform on ICICI Bank with a target of Rs 1,700, implying a 19% upside. The brokerage house forecasts HDFC Bank to deliver 11% loan growth in FY26 and 15-16% thereafter, while ICICI Bank's loan growth moderated to 11-12% YoY due to weak demand and a focus on profitable growth.

CLSA's Top Banking Picks: ICICI Bank, SBI, and Bandhan Bank

CLSA has recommended ICICI Bank, State Bank of India (SBI), and Bandhan Bank as top picks in the banking sector. The brokerage house has maintained its 'Outperform' rating on HDFC Bank with a revised target of Rs 2,300, implying an 18% upside. Similarly, CLSA has maintained its 'Outperform' rating on ICICI Bank with a target of Rs 1,700, indicating a 19% upside.

HDFC Bank and ICICI Bank: Key Highlights

CLSA forecasts HDFC Bank to deliver 11% loan growth in FY26 and 15-16% thereafter. The brokerage house has noted HDFC Bank's strong performance in customer acquisition and deposit growth, with a focus on quality over quantity. ICICI Bank, on the other hand, has seen its loan growth moderate to 11-12% YoY due to weak demand and a focus on profitable growth. The bank has maintained strong profitability metrics and stable asset quality despite the challenging rate cut environment.

SBI and Bandhan Bank: Mid-Cap and Large-Cap Picks

SBI and Bandhan Bank are also highlighted by CLSA as strong picks in the banking sector. SBI, a large-cap bank, is known for its stable asset quality and strong deposit growth. Bandhan Bank, a mid-cap bank, has shown impressive growth in its customer base and loan portfolio.

Conclusion

CLSA's recommendations reflect the brokerage house's confidence in the growth prospects and profitability of these banks. Investors should closely monitor these banks' performance and adjust their portfolios accordingly. As always, it is essential to conduct thorough research and consider individual risk tolerance before making investment decisions.

References

[1] https://www.financialexpress.com/market/clsas-top-banking-sector-picks-icici-bank-sbi-and-more-3921627/
[2] https://www.business-standard.com/markets/news/analysts-suggest-buying-icici-bank-stock-hike-target-price-on-q1-results-banking-stock-private-bank-sector-bse-nse-nim-nii-profit-share-market-today-sensex-nifty-125072100188_1.html
[3] https://www.tradingview.com/news/moneycontrol:bead20ae5094b:0-buy-hdfc-bank-target-of-rs-2150-prabhudas-lilladher/
[4] https://www.ndtvprofit.com/markets/stock-picks-today-hdfc-bank-icici-bank-ril-jsw-steel-on-brokerage-radar?src=tl_story