Bank Stocks at Big Discount — Buy HDFC, ICICI, Axis, Kotak Mahindra now or wait?

Bank Stocks To BUY: Banking shares have seen a pointy correction in latest months, dragging key indices decrease from their peak ranges.

Despite short-term restoration, the broader development stays beneath stress, elevating the query of whether or not the present fall presents a shopping for alternative in massive non-public sector banks.

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The Nifty Bank index is at the moment at 52,274.60, down 15.37 per cent from its 52-week excessive of 61,764.85. The index has declined 13.64 per cent in a single month and 12.45 per cent thus far in 2026, even because it gained 1.63 per cent prior to now week.

Similarly, the Nifty Private Bank index is at 24,986.70, down 16.01 per cent from its 52-week excessive, with a 13.20 per cent decline on a year-to-date foundation.

The correction has been seen throughout frontline banking shares, together with HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank, with most of them buying and selling 15–25 per cent beneath their 52-week highs.

Brokerages, nonetheless, proceed to stay constructive on the sector, citing bettering enterprise tendencies and engaging valuations.

HDFC Bank shares are buying and selling at Rs 757.95, down 25.73 per cent from their 52-week excessive of Rs 1,020.50. The inventory has declined 23.53 per cent thus far this 12 months and 14.62 per cent over the previous month.

Brokerages see significant upside from present ranges. Jefferies has maintained a “Buy” score with a goal value of Rs 1,240, implying an upside of round 64 per cent. It mentioned “valuations are attractive after the recent correction and the stock remains among top sector picks,” including that stronger asset high quality, wholesome progress and bettering return on fairness assist the outlook.

JPMorgan has upgraded the inventory to “Overweight” from “Neutral” with a goal value of Rs 1,010, indicating an upside of about 34 per cent. The brokerage mentioned the inventory is buying and selling at 1.5 instances FY28 estimated price-to-book, a 16-year low.

“Upgrade driven by expected recovery in system credit growth,” JPMorgan mentioned, including that the financial institution is well-positioned to learn from a shift in the direction of large-cap high quality banks.

HSBC has maintained a “Buy” score with a goal value of Rs 990, implying a 31 per cent upside, whereas Nomura has a goal of Rs 940, suggesting round 24 per cent potential features.

ICICI Bank shares are buying and selling at Rs 1,237.90, down 17.47 per cent from their 52-week excessive of Rs 1,500. The inventory has declined 7.48 per cent thus far this 12 months.

Citi has maintained a “Buy” score with a goal value of Rs 1,720, implying an upside of round 39 per cent. It has positioned the inventory on a “90-day positive catalyst watch”.

“Expect return on assets greater than 2.3 per cent and strong around 5 per cent quarter-on-quarter loan growth,” Citi mentioned.

“Deposits to rise more than 6 per cent quarter-on-quarter driven by a granular retail deposit push,” it added.

The brokerage stays constructive on ICICI Bank’s earnings visibility and powerful stability sheet.

Axis Bank shares are buying and selling at Rs 1,203.80, down 15.13 per cent from their 52-week excessive of Rs 1,418.30. The inventory has fallen 5.54 per cent thus far this 12 months.

Citi has maintained a “Buy” score with a goal value of Rs 1,463, indicating an upside of about 21 per cent. The inventory can be on a “30-day upside catalyst watch” forward of quarterly outcomes.

“Expect return on assets greater than 1.6 per cent, driven by stronger corporate, SME and small business credit growth,” Citi mentioned.

“Slippages expected to decline, improving asset quality and keeping credit cost near 0.6 per cent,” it added.

Kotak Mahindra Bank shares are buying and selling at Rs 367.15, down 20.25 per cent from their 52-week excessive of Rs 460.38. The inventory has declined 17.23 per cent thus far this 12 months.

Nomura has upgraded the inventory to “Buy” from “Neutral” with a goal value of Rs 445, implying an upside of round 21 per cent.

The brokerage sees bettering progress prospects and believes the latest correction presents a greater entry level. Kotak Mahindra Bank can be amongst Nomura’s prime picks within the sector.

Brokerages stay broadly constructive on the banking sector, although some dangers persist. Jefferies mentioned enterprise tendencies improved within the fourth quarter and outcomes are anticipated to stay steady.

However, it warned {that a} extended battle may influence web curiosity margins, progress and asset high quality. “Working capital demand has surged but some capex is being slowed,” it mentioned, including that there was no dialogue round moratoriums with the RBI thus far.

Nomura famous that system credit score progress has picked as much as 14.9 per cent year-on-year from 10 per cent since mid-2025. However, the credit-deposit ratio has risen to 82 per cent versus a long-term common of 75 per cent, indicating tighter liquidity situations.

“Liquidity buffers are declining and sustained growth will require better deposit mobilisation,” it mentioned. It additionally flagged rising funding prices and decrease margin estimates throughout the sector.

The sharp correction in banking shares has introduced valuations nearer to historic lows, particularly for giant non-public sector banks. Upside potential, based mostly on brokerage targets, ranges from about 21 per cent to as excessive as 64 per cent throughout the highest names.

Most brokerages imagine that draw back dangers are largely priced in, significantly in HDFC Bank, whereas ICICI Bank and Axis Bank proceed to supply regular progress visibility. Kotak Mahindra Bank can be seeing bettering sentiment after latest upgrades.

At the identical time, near-term dangers comparable to margin stress, deposit challenges and international uncertainties stay key monitorables.