Major Brokerage’s Big Bet: ICICI, HDFC, SBI, or AU Bank? Find out which one could bring a windfall. Big bet of big brokerage: ICICI, HDFC, SBI or AU Bank? Know whose purchase will bring rain of money – ..

There is a tremendous stir these days in the Indian Banking and Financial Services (BFSI) sector. After the strong domestic economy, improvement in credit growth and recent quarterly results, the country’s leading brokerage house has released its latest report on the top stocks of this sector. In this report, an in-depth analysis of the country’s largest government bank SBI, private sector giant HDFC Bank, ICICI Bank and rapidly emerging AU Small Finance Bank has been done. The brokerage has given a hint of strong earnings to the investors by including some selected stocks in its ‘Top Pick’ list.

Why are brokerages expressing the most trust on ICICI and SBI?

Market experts and big brokerage houses believe that ICICI Bank is currently in the strongest position on both the retail and corporate fronts. The bank’s asset quality is excellent and its Net Interest Margin (NIM) remains stable, due to which it has been placed in the top list with ‘Buy’ rating. On the other hand, brokerages are also quite bullish on public sector State Bank of India (SBI). Due to its vast network spread across the country, strong loan book and increasing funding in government infrastructure projects, SBI is considered a very safe and profitable bet for the long term.

What is the strategy regarding HDFC and AU Small Finance Bank?

After the recent big merger, there was a slowdown in the shares of HDFC Bank for some time, but the brokerage believes that now the stock is gradually returning to its old rhythm. For long-term investors, there are good opportunities to buy HDFC Bank at the current level as its deposit base is continuously improving. At the same time, the brokerage has presented a different and positive view regarding AU Small Finance Bank (AU Bank), which is rapidly expanding its presence in small and medium cities. AU Bank is considered one of the best growth stocks in the mid-cap banking space due to its strong foothold in rural and semi-urban areas and rising loan demand.

Huge stir among different financial centers and investors of the country

After this brokerage report came out, the discussion regarding change in portfolio has intensified among big traders and wealth managers from Dalal Street of Mumbai to Delhi, Kolkata, Chennai and Gujarat. Local brokers and sub-brokers are advising their clients to invest money gradually (in SIP mode) through banking funds and directly into these selected stocks. Experts say that the banking sector is the engine of any country’s economy, and currently the balance sheets of Indian banks are the strongest in the last decade, so investors should definitely add these top picks to their portfolio in case of a downturn.