Jefferies Betting Big on Indian Banking Sector with 17% Upside Potential

Jefferies recommends buying ICICI Bank, HDFC Bank, IndusInd Bank, and Punjab National Bank, citing strong balance sheets, improving deposit growth, and stable return ratios. The brokerage sees up to 17% upside potential in select counters from current levels, driven by earnings firmness, steady margins, and controlled credit costs. Indian banks trade below global peers despite better profitability and capital strength, a gap Jefferies believes will close as the cycle runs its course.