Banking on bank stocks: Top brokerages put their money on SBI, HDFC Bank, ICICI Bank

Top brokerages maintain their bullish stance on India’s leading banks from private and public space. Among the private players, HDFC Bank and ICICI Bank are preferred choices while largest state lender State Bank of India (SBI) is from the PSU bank segment.

SBI: Buy| CMP: Rs 608| Target: Rs 730 | Upside 18% 

Credit Suisse has recommended a buy in SBI shares at a price level of Rs 616. The brokerage maintains an ‘Outperform’ rating on it with a price target of Rs 730, estimating an 18 per cent upside. This translates into Rs 114 per share gains.

Low Foreign Institutional Investors’ (FII) ownership in PSU Bank limits potential risk from FII selling, the brokerage said. FII ownership in PSU Banks is relatively low at 8-10 per cent for SBI and Bank of Baroda (BoB). The brokerage said that it will continue to prefer larger banks, BoB, SBI, IndusInd Bank and ICICI Bank.

In contrast, the FII ownership in private banks is between 30-45 per cent for larger private banks, it said.

HDFC Bank: Buy| CMP: Rs 1640| Target: Rs 1900 | Upside 16% 

Bank of America (BofA) has recommended a buy on this stock citing risk-to-reward ration being attractive at current levels. The stock is recommended at a price of Rs 1632. The brokerage has also cited company management’s confidence on delivering earnings ahead of the market expectations.

An upside of 16 per cent is seen in this stock.

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ICICI Bank: Buy| CMP: Rs 904 | Target: Rs 1075 | Upside 18% 

Credit Suisse is bullish on ICICI Bank stock and maintains an outperform rating on this stock. The stock was recommended at a price of RS 909 for a price target of Rs 1075 which translates into Rs 164 per share gains. The stock today ended at Rs 904.80 on the NSE, down 0.44 per cent.

Also Read: HDFC Bank vs ICICI Bank vs Axis Bank vs Indusind Bank: Which stock offers more value for your buck?

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)