Archive · 5 Sep 2025
MOSL Names Top Banking Picks for Earnings Recovery
A financial company called Motilal Oswal (MOSL) thinks that banks in India are about to start making more money again.
They suggest that ICICI Bank, HDFC Bank, and SBI are the best choices for investment.
The company expects earnings to improve in the second half of 2026.
Banks saw slower profit growth recently due to interest rate changes.
MOSL believes profits will grow strongly from 2026 to 2028.
They also predict that loans will grow because people will start borrowing more money, which will help banks earn more.
MOSL identifies ICICI Bank, HDFC Bank, and SBI as top investment picks.
Indian banks are nearing the bottom of their earnings cycle, per MOSL.
NII growth slowed sharply due to aggressive loan repricing.
Earnings growth is expected to rebound from H2FY26.
Loan growth is projected to drive the next phase of earnings growth.
- Who
- Motilal Oswal Financial Services (MOSL)
- What
- Identified top banking stocks for investment
- When
- As per recent analysis
- Where
- N/A
- Why
- To play the upcoming earnings recovery in the banking sector
- Brokerage
- Motilal Oswal Financial Services (MOSL)
- Top Investment Ideas
- ICICI Bank, HDFC Bank, SBI
- NII Growth (1QFY26)
- -1% YoY
- PAT Growth (H2FY26E)
- 9% YoY
- Sector Earnings CAGR (FY26-28E)
- 17%
- Loan Growth (FY26E)
- 11%
- Loan Growth (FY27E)
- 12.5%
