CLSA Sees Significant Upside for HDFC, ICICI Banks Despite Stock Declines Brokerage firm CLSA has issued 'Outperform' ratings for HDFC Bank and ICICI Bank, setting ambitious price targets that indicate substantial potential gains. However, this positive outlook contrasts with the banks’ recent stock performance, as both have declined between 5% and 15% this year. CLSA highlights faster profit growth for HDFC Bank and improved retail lending for ICICI Bank as key factors supporting its bullish stance. Analysts also caution that upcoming regulatory changes and intense market competition could pose challenges. CLSA has initiated coverage of HDFC Bank and ICICI Bank with 'Outperform' ratings, forecasting significant returns over the next 12 months. The firm has set a price target of ₹1,200 for HDFC Bank, which implies a 41% potential increase from current levels, and ₹1,700 for ICICI Bank, suggesting a 29% gain. CLSA expects both banks to deliver returns exceeding 25% within the next year, driven by anticipated profit and loan growth. Despite the brokerage’s optimism, the banks’ stock prices have lagged. HDFC Bank and ICICI Bank have both fallen between 5% and 15% this year. On March 10, 2026, HDFC Bank closed at ₹849.10, up 0.99%, with about 1.37 crore shares traded. ICICI Bank closed higher by 2.69% at ₹1,312.80, with over 34.7 lakh shares changing hands. However, HDFC Bank is trading near its 52-week low and below key technical averages, while ICICI Bank’s momentum has been weak on weekly and monthly charts. CLSA’s positive outlook is based on growth and valuation factors. For HDFC Bank, faster profit growth is a key driver, while ICICI Bank benefits from its strong retail lending outlook and solid asset quality.#icici_bank #hdfc_bank #clsa #digital_banking_rules #regulatory_changes
Right time to buy HDFC Bank, ICICI Bank shares? Here’s why CLSA is bullish on both bank stocks Brokerage firm CLSA has expressed confidence in the long-term prospects of HDFC Bank and ICICI Bank, suggesting both stocks could deliver over 25 per cent returns in the next 12 months. The firm has retained its ‘Accumulate’ rating on the two private sector lenders, citing an improving banking sector outlook, attractive valuations, and potential growth catalysts. Despite recent declines in their share prices, CLSA believes investor concerns about the banks are likely to ease as the sector’s fundamentals strengthen. For HDFC Bank, CLSA has set a target price of Rs 1,200, which is 41 per cent higher than its current market price of Rs 849. The brokerage argues that the bank’s core pre-provision operating profit (PPOP) is expected to grow at a compound annual rate of 18 per cent between fiscal years 2026 and 2028, outpacing the 12 per cent growth seen between 2024 and 2026. This stronger earnings trajectory, combined with an attractive valuation, could lead to a re-rating of the stock. Currently, HDFC Bank trades at about 1.8 times its price-to-book ratio and 13 times its price-to-earnings ratio on a one-year forward basis. The stock has faced a 15.59 per cent decline in 2026 so far, with a 9.76 per cent drop in the past month. However, its five-year performance shows a 7.55 per cent gain, indicating resilience over the long term. CLSA also notes that concerns about the bank’s loan-to-deposit ratio (LDR) have been over-analyzed, as the Reserve Bank of India has shifted focus away from this metric. The brokerage believes the market’s perception of HDFC Bank is likely to change as the sector’s recovery gains momentum. ICICI Bank’s potential is highlighted by CLSA’s target price of Rs 1,700, which represents a 29.#icici_bank #reserve_bank_of_india #banking_sector #hdfc_bank #clsa
