HDFC Bank, SBI, ICICI Bank & More — Systematix Top Stocks To Buy In Banking Sector; Q1 Results Preview

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Report

Q1 FY26 is expected to be a muted quarter with most banks juggling with many adversely moving aspects such as-

1. Slowing advances growth during the quarter,

2. margin pressure from consecutive Repo Rate cuts,

3. Seasonally weak quarter for fee income,

4. annual appraisal-related expenses in the Operating expenses and

5. sustained elevated credit costs for unsecured credit segments, further driven by agri slippages.

However, we see the tables turning in H2 FY26 on expected

1. growth momentum in advances, arising from lower interest rates revised MSME definition increasing scope of credit higher tax limits.

2. Net Interest Margins to see an improving trend as Deposits cost is expected to trend lower with reprising of existing book lower CRR to free up capital for generating yield

3. normalisation of unsecured segment slippages, resulting in lower credit cost. While there could be nearterm pain, our long-term growth outlook for the banking sector remains positive.

We reinitiate coverage and revise our estimates for the seven banking stocks (HDFC Bank, ICICI Bank, SBI, Kotak Mahindra Bank Axis Bank, IndusInd Bank and Federal Bank) under our coverage.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.