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
