Sunny Agrawal of SBI Securities highlights Axis Bank, ICICI Bank, and HDFC Bank as top large-cap picks amid a broader shift towards select mid-sized lenders like Karur Vysya and Ujjivan in the evolving banking landscape.
Sunny Agrawal of SBI Securities has singled out a cluster of private-sector lenders as the names he would rather own in the near term, with Axis Bank, ICICI Bank and HDFC Bank emerging as his preferred large-cap choices. According to Business Today, Agrawal said Axis Bank could keep outperforming, while HDFC Bank’s recovery may take two to three quarters and looks better suited to investors with a longer time horizon.
He also pointed to mid-sized and smaller lenders that, in his view, are showing enough operating strength to merit attention. Karur Vysya Bank, he said, delivered a strong quarterly performance and should continue to do well. Ujjivan Small Finance Bank also impressed in the first quarter of FY27, with Agrawal placing fair value at about ₹85 and suggesting investors could consider a modest allocation at that level.
His view on Ujjivan comes as other brokerages have turned constructive on the stock. ICICI Securities recently upgraded the lender to a buy with a target of ₹90, citing stable asset quality, steady net interest margins and solid disbursement momentum. In an earlier note, the same broker had set a target of ₹75 after Ujjivan’s return on assets improved and stress in microfinance eased.
The broader banking backdrop remains supportive of selective stock-picking. Nuvama Institutional Equities has named 12 banking stocks, including SBI, HDFC Bank and ICICI Bank, as long-term ideas, while Axis Securities has also leaned towards names with improving asset quality, steady credit growth and lower credit costs. For investors, the message from analysts is broadly consistent: favour lenders with strong balance sheets, and be patient with banks still working through a slower recovery.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
