Kotak Institutional Equities has maintained an overweight stance on leading private banks HDFC Bank and ICICI Bank, citing attractive valuations and resilient asset quality as key factors. The brokerage highlighted improved loan yields and lower funding costs as drivers for these banks’ potential outperformance, according to livemint.com. The update was published on June 26, 2026.
Kotak’s support for HDFC Bank and ICICI Bank follows its assessment of the banks’ strong fundamentals and favourable market conditions. The brokerage expects these lenders to benefit from better loan yields and reduced funding expenses, despite a cautious outlook on loan demand. Kotak also anticipates strong asset quality and less pressure on corporate balance sheets, which could support earnings growth, as reported by livemint.com.
The brokerage’s positive view on HDFC Bank and ICICI Bank comes amid a broader market context where private banks are seen as well positioned to outperform. This stance contrasts with concerns over loan demand but aligns with expectations of earnings-led re-rating and improving funding dynamics. The focus on these banks reflects their leading positions in the Indian banking sector and their ability to navigate current economic challenges, according to livemint.com.
ICICI Securities recently noted that RBI’s clarifications on the FCNR(B) scheme could boost deposit mobilisation for banks like HDFC Bank and Axis Bank, enhancing liquidity. This regulatory clarity is expected to make the scheme more attractive to non-resident depositors, potentially benefiting these banks’ funding profiles, per bfsi.economictimes.indiatimes.com.