Stories
Macquarie Predicts Strong FY28 for Indian Banks, Highlights Top Picks
C
CNBC TV18•30-09-2026, 10:27
Macquarie Predicts Strong FY28 for Indian Banks, Highlights Top Picks
- •Macquarie projects Indian banks to achieve nearly 18% EPS growth in FY28, driven by a 15 basis point increase in net interest margins.
- •The brokerage firm sees significant re-rating potential for banking stocks, trading at attractive valuations of 1.3x FY28E P/B and 10x P/E.
- •Macquarie expects private banks to deliver strong EPS growth over the next two years due to improved margins and reduced operating and credit costs.
- •Top picks include ICICI Bank, Kotak Mahindra Bank, State Bank of India, and City Union Bank within banking, and L&T Finance, Aditya Birla Capital, Shriram Finance, and M&M Financial Services among other financials.
- •Macquarie upgraded Bank of Baroda to "outperform" with a 22% upside potential and Kotak Mahindra Bank with a revised target of ’500, also upgrading Paytm and LIC while downgrading PB Fintech.
Key Questions Answered
Macquarie projects that banks will deliver an Earnings per Share (EPS) growth of nearly 18% in financial year 2028, supported by an expected increase of nearly 15 basis points in their net interest margins and strong earnings projections.
Macquarie's top picks within banking feature ICICI Bank, Kotak Mahindra Bank, State Bank of India, and City Union Bank, alongside firms like L&T Finance, Aditya Birla Capital, Shriram Finance, M&M Financial Services, Paytm, LIC, and SBI Life.
Macquarie upgraded Bank of Baroda to 'outperform' with a raised price target of ₹280 and upgraded Kotak Mahindra Bank to 'outperform' while increasing its price target to ₹500.
