Gaurang Shah picks Indian Bank, SBI, ICICI Bank, Federal Bank as preferred banking bets

Banking stocks are back at the centre of investor attention, and Geojit Investments' Gaurang Shah has laid out a clear long-term pecking order across both public and private sector lenders. Responding to a viewer query on which banking names to buy for the long haul, Shah singled out Indian Bank Ltd and State Bank of India Ltd among PSU lenders, while naming ICICI Bank Ltd as largecap and Federal Bank Ltd as his preferred midcap private sector banking bets.

Four names, one clear message

Shah’s recommendations were notable for spanning both size and ownership categories, giving investors a mix of stability and growth. “Indian Bank, of course, State Bank of India” were his top public sector choices, while in private banking he said “ICICI Bank and Federal Bank would be okay.”

The comment on Indian Bank came with a strong endorsement of its recent operating performance. Shah said the lender had delivered a “stellar set of performance,” making it his standout PSU banking idea at a time when investors are increasingly rewarding earnings visibility and balance-sheet strength.

Why the timing matters

The recommendations come at a crucial point for the sector. Banking stocks were already in focus as markets looked ahead to a heavy earnings cycle, with several large private banks set to report quarterly numbers and investors closely tracking asset quality, provisioning trends, deposit growth, net interest margins and management commentary.

In the broader discussion, Shah had underlined that private sector banks continue to be watched for stronger asset quality and margin resilience. That backdrop makes his preference for ICICI Bank significant, especially as investors seek large-cap financial names with relatively stronger execution and earnings consistency.

Outlook on IT sector 

meanwhile, in a reply to another query on IT sector, Shah said it is not known what is going to come in terms of futuristic products, platforms and tools as IT is one sector that is ever evolving.

"The most number of changes and evolution in terms of technology upgrade that happens, happens within IT compared to any other sector. We remain positive on IT, even when a lot of people have written an obituary, uh, Sakshi, for IT sector.

"Most of the IT companies have now started to move at a faster speed towards AI, whether it is with respect to taking over companies or getting in manpower," he said.