4 ‘Buy’ recommendations by Jefferies with up to 17% upside potential

Jefferies is betting on the growth opportunities across the Indian banking sector with ‘Buy’ calls on ICICI Bank, HDFC Bank, IndusInd Bank, and Punjab National Bank, seeing as much as 17% upside in select counters from current levels. The brokerage said earnings across these lenders remain firm, margins steady, and credit costs in check, a combination that, in its view, still isn’t fully priced in.

Jefferies noted that balance sheets are stronger, deposit growth is improving, and return ratios are holding near cycle highs. Indian banks, it said, continue to trade below global peers despite better profitability and capital strength, a gap the brokerage believes will close as the cycle runs its course.

Jefferies on ICICI Bank: ‘Buy’

Jefferies reiterated its Buy rating on ICICI Bank an