Bank Stocks In Focus: Analyst Prefers ICICI Bank, Axis Bank And Ujjivan SFB

Banking stocks have remained under pressure, but improving margins and a gradual shift towards retail lending could support recovery. Sunny Agarwal, SBI Securities, expects ICICI Bank to maintain its leadership, while Axis Bank could outperform among large Tier-I banks. HDFC Bank offers attractive valuations, although recovery may take the next two to three quarters. Among mid-sized banks, Karur Vysya Bank remains a preferred pick after strong quarterly numbers. Ujjivan Small Finance Bank is another stock in focus after raising its ROE guidance. The banking sector could see gradual improvement as deposit repricing benefits emerge.