14 hrs ago
Systematix sets fresh targets for Indian banks amid growth outlook
Systematix is a research firm that looked at 13 banks.
It expects most of them to earn more profit than a year earlier.
Loans grew quickly across the banking system, and deposits also increased.
Systematix thinks banks may have to pay more to attract deposits, which could reduce their profit margins.
It expects fees to rise, although treasury income may fall at many banks.
It expects loan problems to stay under control at several banks.
It forecasts higher credit costs at SBI and Bank of Baroda.
Systematix favors ICICI Bank, SBI and Kotak Mahindra Bank, while it gives Federal Bank and IndusInd Bank Hold ratings.
Systematix expects about 15% year-on-year PAT growth across its coverage universe, excluding IndusInd Bank.
Banking system advances grew 19% year-on-year in August 2026, while deposits rose 17.3% year-on-year as of September 15, 2026.
Systematix expects higher term-deposit costs to pressure margins, with the projected decline varying by bank.
It expects asset quality to remain contained at several banks, but sees higher credit costs at SBI and Bank of Baroda.
Systematix rates ICICI Bank, SBI and Kotak Mahindra Bank among its top picks; it rates Federal Bank and IndusInd Bank Hold.
- Who
- Systematix, which covers 13 banks.
- What
- It forecast bank earnings and sector trends and issued ratings and price targets for 13 banks.
- Where
- India.
- When
- The analysis cites August 2026 credit data and deposit data as of September 15, 2026.
- Why
- Systematix expects advances growth and lower provisioning costs to support earnings, while higher deposit costs may weigh on margins.
Key facts
- Coverage
- 13 banks
- PAT growth outlook
- About 15% year-on-year for the coverage universe, excluding IndusInd Bank
- Banking system advances
- Grew 19% year-on-year in August 2026
- System deposit growth
- 17.3% year-on-year and 6.9% quarter-on-quarter as of September 15, 2026
- Top picks
- ICICI Bank, State Bank of India and Kotak Mahindra Bank
- Buy-rated banks
- ICICI Bank, State Bank of India, Kotak Mahindra Bank, Bank of India, Axis Bank, HDFC Bank, Karur Vysya Bank, Indian Bank, Bank of Maharashtra, Union Bank of India and Bank of Baroda
- Hold-rated banks
- Federal Bank (target price Rs 350) and IndusInd Bank (target price Rs 950)
Sources
Related news
BofA Maps Four Distinct Growth Paths for India’s Large Banks
Motilal Oswal Names Four Banking Stocks Amid Credit Growth
Indian Bank Credit Growth Hits Decade High in August
Bank Q2 Updates Lift Shares, but Deposit Mix Draws Attention
Indian Banks Seen Gaining Q2 FY27 Earnings Momentum
Jefferies Sees Indian Financial Stocks Rebounding, Names Ten Buys
FCNR(B) Deposit Surge May Squeeze Banks’ Margins
FCNR-B Deposits Fuel Bank Growth but Pressure Margins
Delhi Gold Prices Slip as Weak Demand and Dollar Weigh
Haryana Board Sets 2026-27 School Affiliation Application Schedule
Jio Platforms IPO May List Among India’s Top Three Stocks
