CLSA on HDFC Bank
Outperform | TP Rs 1200
2Q steady with NII and core PBT in line. Deposit growth strong at 15%, loan growth up to 10% YoY. CASA ratio stable. FY25 was a year of aggressive deposit mobilisation; FY26 focus to shift to quality of deposits. NIM down 8 bps QoQ, slightly better than expected.
MS on HDFC Bank
Overweight | TP Rs 1225
Deposit growth moderated but market share gains continue. Asset quality robust; operating leverage improving; NIMs bottomed out. Expect stronger core PPoP growth over FY26–FY28 driven by loan market share gains.
Bernstein on HDFC Bank
Outperform | TP Rs 1150
Healthy 2Q with 10% EPS growth and stable RoA of 1.9%. NIM fell 8 bps QoQ, cost growth controlled at 6% YoY. Non-interest income rose 25% YoY, driving stronger PPoP and EPS growth versus Axis Bank.
Nomura on HDFC Bank
Buy | TP Rs 1120
2QFY26 slight miss on operating profit; asset quality improved and loan growth gained momentum. Core PPoP slightly below forecast; trading income supported PAT. Expect RoA/RoE of 1.8–1.9%/14–15% over FY26–28F.
HSBC on ICICI Bank
Buy | TP Rs 1680
Strong NIM, credit costs, and fees supported performance. Marginal earnings tweaks as slower loan growth and higher costs offset by lower provisions. Premium valuations expected to sustain.
CLSA on ICICI Bank
Outperform | TP Rs 1700
2QFY26 PPOP/PAT beat by 4%/10%. Loan growth moderated, driven by business banking. Core NIM improved 3 bps QoQ vs. expected 10 bps decline. Management not guiding for further NIM gains in 2H due to deposit repricing.
MS on ICICI Bank
Overweight | TP Rs 1800
Delivered NIM of 4.30% in F2Q26 despite repo cuts. Loan spreads near trough; expect faster growth ahead. Asset quality and profitability remain solid.
Nomura on ICICI Bank
Buy | TP Rs 1800
2QFY26 in line; soft loan and deposit growth offset by lower credit cost. Asset quality strong. Expect sector-leading RoA/RoE of 2.3–2.4%/16% over FY26–28F.
Bernstein on ICICI Bank
Market Perform | TP Rs 1440
Loan growth slowed to 10% YoY, deposit growth at 8% YoY below system average. Strategy prioritising margins over growth maintained strong RoA of 2.3%. Profitability intact but growth deceleration a concern.
DAM Capital on ICICI Bank
Buy | TP Rs 1670
Operationally steady with room for growth acceleration. NIM performance commendable; asset quality and capital levels robust. ECL and credit risk weight changes expected to aid balance sheet.
Bernstein on IndusInd Bank
Outperform | TP Rs 1000
Weak quarter with loss of Rs 6 per share due to higher provisions (+44% YoY). Loan and deposit base contracted; microfinance book continued to shrink. PPoP down 44% YoY; recovery timeline uncertain.
MS on IndusInd Bank
Equalweight | TP Rs 785
Challenging quarter; core PPoP 7% below estimate. Slippages high at 2.8%, credit cost up to 318 bps. EPS cut 59% for FY26 and 8–9% for FY27–28.
Nuvama on IndusInd Bank
Reduce | TP Rs 600
Reported Rs 4.5 bn loss in Q2FY26 due to MFI write-offs and weak growth. NIM fell 14 bps QoQ to 3.3%. Expect RoA below 1% through FY27E. Provisions to stay elevated; new CEO to present three-year plan.
CITI on AU Small Finance Bank
Buy | TP Rs 990
Earnings beat with 1.37% RoA, aided by 24% QoQ fee growth and better NIMs. Credit cost contained at 1.7%. Asset quality improving; NIMs to rise further. Raised FY26–FY28 earnings estimates by 4%.
Nomura on AU Small Finance Bank
Neutral | TP Rs 750
2QFY26 strong across metrics. Raised FY26–28 EPS by 8–12%. NIM, fee income, and asset quality all improving. Expect RoA/RoE of 1.6%/16% and EPS CAGR of 29% over FY26–28F.
Jefferies on AU Small Finance Bank
Buy | TP Rs 940
Q2 profit Rs 5.6 bn down 2% YoY but ahead of estimates. AUM grew 17% YoY; growth to reach 20% with rising unsecured loans. Credit quality improved; RoA seen at 1.7% by FY27E.
MS on AU Small Finance Bank
Overweight | TP Rs 1175
Strong surprise on NIMs and asset quality. Expect EPS growth of 40% in FY27 and 23% in FY28 driven by MFI recovery, SA rate cuts, and strong secured loan growth.
MS on Federal Bank
Equalweight | TP Rs 220
Strong NIM surprise in F2Q26 due to CASA growth and lower-cost funding. Asset quality improved; EPS estimate raised by 5%.
DAM Capital on Federal Bank
Buy | TP Rs 250
Operationally better quarter; growth yet to pick up fully. Improving balance sheet mix and deposit franchise. Expect rebound in business and profitability from 2H onwards.
MS on IDFC First Bank
Equalweight | TP Rs 72
Strong balance sheet growth; NIM bottomed out. Asset quality improved. Expect gradual earnings recovery with RoA rising from 0.4% in FY25 to 1% in FY27.
Jefferies on IDFC First Bank
Buy | TP Rs 85
Q2 profit Rs 3.5 bn, up 76% YoY, slightly above estimate. MFI slippages halved QoQ; credit quality stable. NIM under pressure due to slower SA rate cuts. ROA improvement key; Rs 75 bn capital raise to boost CET-1.
MOSL on IDFC First Bank
Buy | TP Rs 80
Asset stress peaked; earnings momentum improving. CASA mix at 50%. NIMs expected to rise to 5.8% by 4QFY26. Credit cost to decline to 1.8% in 2H.
Nuvama on IDFC First Bank
Hold | TP Rs 68
MFI stress easing; loans up 6% QoQ, deposits 5%. NIM down 12 bps QoQ as SA rates unchanged. Credit cost fell to 2.2%; expected at 1.8% in 2H with MFI recovery. Focus on improving LDR over cutting SA rates.
IIFL Finance on RBL Bank
Buy | TP Rs 375
Emirates NBD to infuse US$3 bn and merge Indian branches, holding 62% stake. Key positives include funding cost advantage, NRI deposits, stronger corporate lending, and new cross-border capabilities. Expect RoA at 1.5% over FY27–28E with improving ROE.
MOSL on RBL Bank
Buy | TP Rs 350
NII in line but higher provisions weighed on profit. Advances healthy; margins expanded. With ENBD infusion expected in 1QFY27, raised FY27–28 earnings by 19%/17%. Expect RoA of 1.2%/1.4%.
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