Global brokerage firm Novuma maintained a ‘Buy’rating for India’s major private banks–ICICI Bank, Axis Bank, and HDFC Bank—despite the lenders’ experienced margin pressure in Q2.  Year-to-date, shares of ICICI Bank and Axis Bank have gained up to 4 per cent, whereas HDFC Bank has declined by 26 per cent. 

ICICI Bank Share Target

Nuvama has maintained a 'BUY' rating on ICICI Bank with a target price of Rs 1,850, highlighting that credit growth remained robust even after accounting for the redemption of FCNR deposits. The brokerage projects a Return on Assets (RoA) of 2.2–2.3 per cent and a Return on Equity (RoE) of around 17 per cent over FY27–FY29.

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HDFC Bank Share Target

Nuvama reiterated its 'BUY' rating on HDFC Bank with a target price of Rs 950, noting that quarterly results were largely in line with consensus. Credit growth stood at a healthy 16 per cent year-on-year, though earnings growth remained modest.

Elara highlighted HDFC Bank's 1.7 per cent RoA and a sluggish margin recovery as near-term challenges. Nevertheless, recent trends suggest that the bank may have navigated the worst of the cycle.

Axis Bank Share Target

Nuvama maintained its 'BUY' rating on Axis Bank with a target price of Rs 1,650, expecting sustained credit growth and a margin recovery starting in Q3 FY27 as liquidity is deployed. Expanding margins, alongside lower provision requirements, are expected to drive return ratios higher.

The brokerage advised investors to track the bank's ability to sustain its current earnings momentum as the favourable low-base effect begins to fade.

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Target Prices and Expected Returns

  • ICICI Bank: Target price of Rs 1,850 with expected return around 17% over FY27–FY29.

  • HDFC Bank: Target price of Rs 950, with 16% YoY credit growth, though RoA remains challenged in the near term at 1.7% with sluggish margin recovery.

  • Axis Bank: Target price of Rs 1,650, with expected margin recovery from Q3 FY27 and lower provision requirements driving return ratios higher.