Several banking sector stocks have shared their Q2 updates ahead of Q2 FY26 earnings. International brokerage firm Jefferies has maintained its ‘Buy’ rating on many of these banking stocks, seeing as much as 30% upside in select stocks.

Here is a detailed analysis of the stocks that Jefferies is bullish on and the investment rationale –

Jefferies on Kotak Mahindra Bank

Kotak Mahindra Bank showed the strongest momentum among the three banks selected by Jefferies. It has reported strong net loan growth of 16% YoY, while total deposits were stable at 15% YoY, supported by an 11% YoY increase in CASA deposits. Jefferies retained its Buy call on the stock, with a target price of Rs 2,550, implying an upside of 21% from current levels.

Jefferies on IndusInd Bank

IndusInd Bank wit

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