Goldman picks ICICI, Kotak as top bank bets

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• Top Trending Stocks: SBI Share Cost, Axis Bank Share Rate, HDFC Bank Share Cost, Infosys Share Rate, Wipro Share Cost, NTPC Share Rate.
• It set target rates of ₹1, 020 for IndusInd Bank, ₹92 for IDFC First Bank, ₹180 for Bandhan Bank and ₹1, 170 for SBI.
• While Yes Bank was assigned a target of ₹22, implying 2.1% downside, on the 'Sell' side, Goldman Sachs initiated RBL Bank with a target cost of ₹285, implying 26% downside.
• Mumbai: Goldman Sachs has initiated coverage on 14 Indian banks, with ICICI Bank and Kotak Mahindra Bank emerging as its top picks.
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Goldman Sachs picks ICICI Bank, Kotak Mahindra Bank as top banking bets.

Goldman Sachs picks ICICI Bank, Kotak Mahindra Bank as top banking bets. By ET BureauLast Updated: Aug 22, 2026, 08: 28: 00 AM IST.

Goldman Sachs has begun its assessment of fourteen Indian banks, pinpointing its top selections. ICICI Bank and Kotak Mahindra Bank stand out with Purchase ratings that indicate substantial upside potential. The firm anticipates a cyclical recovery in earnings throughout the banking sector. It forecasts that private banks will surpass their state-owned counterparts in performance over the next two years, buoyed by loan expansion and enhanced liquidity.

Mumbai: Goldman Sachs has initiated coverage on 14 Indian banks, with ICICI Bank and Kotak Mahindra Bank emerging as its top picks. As it expects the banking sector to enter a cyclical earnings recovery backed by healthy loan expansion, improving liquidity, recovering net interest margins (NIMs) and benign asset quality, the brokerage sees up to 37% upside throughout its coverage. Goldman Sachs initiated Purchase ratings on ICICI Bank with a target rate of ₹1, 935, implying 37% upside, and Kotak Mahindra Bank at ₹509, implying 31% upside.

It additionally initiated HDFC Bank at ₹861, implying a 19% upside, Axis Bank at ₹1, 477 with 19% upside, Federal Bank at ₹425 with 19% upside and AU Small Finance Bank at ₹1, 270 with 18% upside.: Sebi proposes new channel partner network to boost retail bond access The brokerage initiated Neutral ratings on IndusInd Bank, IDFC First Bank, Bandhan Bank and State Bank of India. It set target rates of ₹1, 020 for IndusInd Bank, ₹92 for IDFC First Bank, ₹180 for Bandhan Bank and ₹1, 170 for SBI. Live Events.

While further re-rating would require sustained RoEs above the cost of equity, goldman Sachs remarked the earnings recovery at mid-sized private banks is already reflected to a substantial extent in valuations. While Yes Bank was assigned a target of ₹22, implying 2.1% downside, on the 'Sell' side, Goldman Sachs initiated RBL Bank with a target cost of ₹285, implying 26% downside. Bank of Baroda and Punjab National Bank were additionally initiated at Sell, with target costs of ₹245 and ₹103, respectively. Goldman Sachs expects private banks to outperform state-owned banks over the next two years on loan expansion, NIMs and asset quality. It expects private banks to accelerate loan expansion above system levels, backed by stronger FCNR(B) deposit mobilisation and a recovery in unsecured lending as asset-quality reservations ease. While deposit expansion is projected to accelerate as liquidity improves, the brokerage expects system loan expansion to remain at around 14-15% during FY26-FY29E. NIMs are projected to trough over the next two quarters before gradually recovering. Goldman Sachs additionally expects asset quality to remain benign, with stress largely confined to granular unsecured loans. For state-owned banks, Goldman Sachs expects gradual credit-cost normalisation and structurally lower core PPoP margins to weigh on RoA progression.

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Taken together, the developments around goldman picks ICICI, Kotak as top bank bets point to a situation that is still moving, and the coming days should bring more clarity.