YES Bank, HDFC Bank, ICICI, Axis, SBI, BoB, Kotak, other bank stocks: Buy, sell or hold?
The brokerage has a ‘Buy’ rating on the State Bank of India (SBI) stock. Bank of Baroda (BoB) stock has an ‘Add’ rating, while Punjab National Bank (Add).
- Feb 13, 2026,
- Updated Feb 13, 2026 1:04 PM IST
Brokerage firm JM Financial, in its latest sectoral note, said the real surprise continues to come from Public Sector Banks (PSBs), which are outpacing their private peers in loan growth.
The brokerage said loan growth in our coverage universe increased to around 13% YoY (from 11% in 2Q), with PSBs outperforming private banks even further. “Deposit growth, however, remained relatively subdued at ~10% YoY with PSBs continuing to lag private peers, resulting in a 270 bps QoQ spike in PSBs’ CD ratio (versus ~60 bps for private banks),” JM Financial said.
JM Financial noted that PSBs still have decent gaps in their liquidity and CD ratios compared to private banks, giving them some levers to protect their margins going forward. “PSBs also turned in stronger PPOP growth on the back of higher treasury gains, recPSBoveries and limited labour code impact, whereas private banks’ PPOP growth moderated due to reduced other income and relatively higher opex pressure,” JM Financial said.
Brokerage’s top picks
JM Financial’s preferred picks in the sector are ICICI Bank, Axis Bank, SBI, Ujjivan SFB, City Union Bank, and DCB Bank.
Below is a list of recommendations based on the JM Financial note. The brokerage, however, has not specified any target prices.
Private banks
ICICI Bank: The brokerage has a ‘Buy’ rating on the stock.
Axis Bank: The brokerage has a ‘Buy’ rating on the stock.
City Union Bank (Buy), DCB Bank (Buy), HDFC Bank (Add), Federal Bank (Add), Bandhan Bank (Add), Kotak Mahindra Bank (Reduce), IndusInd Bank (Reduce). Meanwhile, YES Bank has a ‘Sell’ rating on the stock.
Public sector banks
The brokerage has a ‘Buy’ rating on the State Bank of India (SBI) stock. Bank of Baroda (BoB) stock has an ‘Add’ rating, while Punjab National Bank (Add).
Small finance banks
Ujjivan SFB (Buy), AU Small Finance Bank (Add) and Equitas SFB (Reduce).
Brokerage firm JM Financial, in its latest sectoral note, said the real surprise continues to come from Public Sector Banks (PSBs), which are outpacing their private peers in loan growth.
The brokerage said loan growth in our coverage universe increased to around 13% YoY (from 11% in 2Q), with PSBs outperforming private banks even further. “Deposit growth, however, remained relatively subdued at ~10% YoY with PSBs continuing to lag private peers, resulting in a 270 bps QoQ spike in PSBs’ CD ratio (versus ~60 bps for private banks),” JM Financial said.
JM Financial noted that PSBs still have decent gaps in their liquidity and CD ratios compared to private banks, giving them some levers to protect their margins going forward. “PSBs also turned in stronger PPOP growth on the back of higher treasury gains, recPSBoveries and limited labour code impact, whereas private banks’ PPOP growth moderated due to reduced other income and relatively higher opex pressure,” JM Financial said.
Brokerage’s top picks
JM Financial’s preferred picks in the sector are ICICI Bank, Axis Bank, SBI, Ujjivan SFB, City Union Bank, and DCB Bank.
Below is a list of recommendations based on the JM Financial note. The brokerage, however, has not specified any target prices.
Private banks
ICICI Bank: The brokerage has a ‘Buy’ rating on the stock.
Axis Bank: The brokerage has a ‘Buy’ rating on the stock.
City Union Bank (Buy), DCB Bank (Buy), HDFC Bank (Add), Federal Bank (Add), Bandhan Bank (Add), Kotak Mahindra Bank (Reduce), IndusInd Bank (Reduce). Meanwhile, YES Bank has a ‘Sell’ rating on the stock.
Public sector banks
The brokerage has a ‘Buy’ rating on the State Bank of India (SBI) stock. Bank of Baroda (BoB) stock has an ‘Add’ rating, while Punjab National Bank (Add).
Small finance banks
Ujjivan SFB (Buy), AU Small Finance Bank (Add) and Equitas SFB (Reduce).