According to reports from The Economic Times, analysts have identified nine private and public banking stocks with upside potential of up to 47% in one year. The recommendations come as banks have been among the first set of companies to issue quarterly business updates for Q1 FY27, with reactions being largely positive across the sector. The latest analysis from ET's Stock Reports Plus report dated July 8, 2026, has identified these banking stocks with the highest estimated upside potential based on analyst projections.
As reported by The Economic Times, if there is any improvement in the banking sector's working conditions or even if there is no deterioration in the numbers, there is room for the market to react positively when results are announced. The positive reactions to Q1 FY27 business updates across banks have provided a foundation for these optimistic analyst projections. Recent market developments show that some ships in the Gulf region were reportedly hit, while the Nasdaq ended lower, though these global factors are being monitored alongside domestic banking sector developments.
The quarterly business updates released by banks for Q1 FY27 indicate operating performance that was stronger than market expectations. According to The Economic Times, the updates show improvement in credit growth across both public sector and private sector banks, while asset quality remained stable with non-performing assets (NPAs) staying under control. However, the share of low-cost current account and savings account (CASA) deposits in total deposits has declined for several lenders, pointing to a change in deposit composition that could influence banks' funding costs and margins.
The latest analysis from ET's Stock Reports Plus report has identified the following banking stocks with the highest upside potential: DCB Bank leads with 47% upside potential (Strong Buy recommendation), followed by Bank of Baroda at 44% (Buy), State Bank of India at 37% (Buy), CSB Bank at 34% (Buy), ICICI Bank at 32% (Strong Buy), Axis Bank at 30% (Buy), Punjab National Bank at 30% (Hold), Karur Vysya Bank at 28% (Buy), and Canara Bank at 28% (Buy). These recommendations are based on analyst projections and arranged in descending order of estimated upside potential.
