Goldman Sachs Flags Up to 37% Upside Potential in Top Indian Banks

Goldman Sachs has initiated coverage on 14 Indian banks, giving buy ratings to several large and mid-sized lenders.

The brokerage sees a strong earnings growth potential in private sector banks, including ICICI Bank, Kotak Bank, HDFC Bank, and Axis Bank.

ICICI Bank is Goldman's top pick among the 14 banks, with a target price of Rs 1,935, indicating a potential upside of 37%. Kotak Bank has also been given a buy rating, with a target price of Rs 509, implying an upside of 31%.

Among mid-sized lenders, Federal Bank and AU Small Finance Bank have received buy ratings from Goldman Sachs. However, the brokerage has assigned sell ratings to RBL Bank and Yes Bank, predicting a downside of 26% for RBL Bank and 4% for Yes Bank.