SBI, HDFC Bank, ICICI Bank, BoB, BOI, Axis Bank, Kotak Bank, Federal Bank: Target prices

Following the Indian banking companies' performance in the third quarter of the financial year 2025-26. Brokerage firm Systematix Institutional Equities said in its recent sector review that the profitability of banks has seen an uptick.

“The profitability of the banks has improved in 3Q supported by (i) Higher Net Interest Income (NII) (ii) Lower slippages (iii) Better recoveries and fee income,” the brokerage said.

Systematix noted that the impact of term deposit repricing has shown up in the form of an accelerated reduction in the cost of deposits.

“The full impact of the -25 bps Dec25 repo rate cut is expected to be visible in 4Q. This adverse impact is expected to be offset to an extent by continued repricing of stock Term deposits (TD),” Systematix said.

Target prices mentioned in the note:

State Bank of India (SBI): The brokerage maintains a 'Buy' rating with a target price of Rs 1,400. HDFC Bank: Given a 'Buy' rating, the target price is set at Rs 1,100. ICICI Bank: The brokerage has a 'Buy' call with a target price of Rs 1,720.

Axis Bank: Systematix recommended a 'Buy' with a target price of Rs 1,650. Kotak Mahindra Bank: 'Buy' rating with a target price of Rs 510. Bank of Baroda (BoB): The banking stock 'Buy' rating, with the target price pegged at Rs 372. Union Bank of India: The brokerage set a 'Buy' rating and a target price of Rs 235.

Bank of India (BOI): Systematix recommended a 'Buy' with a target price of Rs 200. Bank of Maharashtra: 'Buy' rating with a target price of Rs 80. Federal Bank: 'Buy' call, setting the target price at Rs 335. 

Meanwhile, the brokerage has a 'Hold' rating on Indian Bank stock with a target price of Rs 1,050. IndusInd Bank also has a 'Hold' rating, with a target price of Rs 950.