During the quarter under review, HDFC Bank reported a net profit of Rs 19,221 crore for the March quarter, registering a 9% increase from Rs 17,616 crore in the same period last year.
ICICI Bank reported a net profit of Rs 13,702 crore in the fourth quarter of FY26, marking an increase of 8.5% year-on-year from Rs 12,630 crore reported in the same quarter last year. The company’s net interest income stood at Rs 22,979 crore, higher by 8.4% year-on-year.
Yes Bank reported a 45% year-on-year surge in net profit to Rs 1,068 crore for the January-March quarter of FY26, although brokerages continue to remain cautious. The company on Saturday reported a 16% YoY rise in net interest income to Rs 2,638 crore for the quarter under review.
Which stock should investors bet on?
For HDFC Bank, brokerages have set target prices in a range of Rs 915 to Rs 1,200, implying potential upside of about 14% to 50% from current levels.
CLSA has an Outperform rating on HDFC Bank with a target price of Rs 1,200, describing Q4FY26 as a steady performance in a slightly challenging environment. Net interest income and pre-provision operating profit were largely in line with estimates, while loan growth at 12% year-on-year met expectations.
JPMorgan has maintained an Overweight rating with a target price of Rs 990. The brokerage expects growth to pick up in FY27 and FY28, supported by improving system credit growth and lower funding costs. It also highlighted that the decline in the liquidity coverage ratio to 114% may limit balance sheet flexibility in the near term.
Jefferies has a Buy rating with a target price of Rs 1,050. The brokerage expects momentum in deposits and margins to drive performance and sees a 15% CAGR in profit before tax excluding treasury income. The brokerage believes that sustained momentum in deposit growth and net interest margins will be key drivers going ahead.
Nomura has maintained a Buy rating with a target price of Rs 950, noting a softer margin performance but a profit beat driven by lower credit costs. Deposit growth remains a key focus area given tight liquidity conditions, while asset quality continues to be strong with healthy loan and deposit growth. The brokerage also flagged leadership continuity as an important factor to watch, with the tenure of the managing director and CEO due for renewal in October 2026, alongside the appointment of a new part-time chairman.
UBS has a Buy rating with a target price of Rs 1,175, suggesting management remains confident about sustaining loan growth momentum, and the brokerage expects return on equity to be in the range of 14% to 15% over FY27-28.
For ICICI Bank, brokerages have pegged target prices in the range of Rs 1,550 to Rs 1,800, indicating a potential upside of about 15% to 34%.
Kotak Institutional Equities has a Buy rating with a target price of Rs 1,800. However, the brokerage cautioned that elevated expectations and premium valuations could limit outperformance, even as it remains positive on balance sheet strength.
CLSA has an Outperform rating with a target price of Rs 1,700, noting that net interest income and pre-provision operating profit were largely in line, while profit before tax beat estimates by 10% due to negligible credit costs driven by recoveries.
Nomura has maintained a Buy rating with a target price of Rs 1,620, highlighting a re-acceleration in loan growth and positive surprise on credit costs. The brokerage estimates a normalised profit beat of around 2%, supported by strong asset quality. With liquidity coverage ratio at 124%, the bank remains well placed to sustain loan growth and margins in the near term. It expects return on assets of 2.2% and return on equity of 16% over FY27–28.
Jefferies has a Buy rating with a target price of Rs 1,670. The brokerage expects loan growth to strengthen to around 15% from FY27, supported by improving sector trends and the bank’s focus on balancing growth with margins. It anticipates net interest margins to soften slightly, while fee income growth is likely to pick up from FY27 as the base effect normalises. Credit costs are expected to inch up marginally, factoring in a normalisation of corporate recoveries and potential risks arising from the ongoing West Asia conflict.
Bernstein has an Outperform rating with a target price of Rs 1,550, stating that the quarter addressed concerns around loan growth, which improved to 16% year-on-year. Credit costs are likely to stay benign at below 50 basis points, supported by stable asset quality, strong corporate balance sheets and improving trends in the retail portfolio. Overall, Bernstein sees the bank delivering a stable performance with a balanced risk-reward profile.
JPMorgan has an Overweight rating with a target price of Rs 1,600, highlighting strong growth momentum with advances rising 6% sequentially, ahead of expectations and peers. The brokerage expects further acceleration in the coming years. It also noted that the bank sees no material risks to its loan book from ongoing global supply chain disruptions, particularly in business banking.
UBS has a Buy rating with a target price of Rs 1,720, suggesting that the bank remains confident on sustaining growth, while margins are expected to stay range-bound. UBS expects return on assets of around 2.2% over FY27–29, with overall metrics remaining stable.
As for YES Bank, JPMorgan has an Underweight rating with a target price of Rs 18, implying a 10% downside. The brokerage flagged concerns around sustainability, especially with potential risks from MSME exposure and supply chain disruptions, and believes current valuations already factor in much of the improvement.
Nomura has a Neutral rating with a target price of Rs 21. While several levers for profitability are in place, the brokerage believes that building a sustainable core return profile will take time. It also noted that execution by the new management team remains an important factor to watch.
Morgan Stanley has maintained an Underweight rating with a target price of Rs 15, stating that core operating profit was in line with expectations, while profit after tax missed estimates. Credit costs remained stable, supported by recoveries, and margins improved sequentially, coming in ahead of expectations. Despite these positives, the brokerage remains cautious, citing valuations that appear high relative to fundamentals.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)