According to analyst consensus data compiled by INDmoney, Axis Bank Ltd leads the banking sector with an estimated upside potential of 27.46%, followed by ICICI Bank Ltd at 21.82% upside potential. The banking sector continues to attract investor interest amid improving credit growth, healthy asset quality, strong capital positions and expectations of sustained earnings momentum. As reported by ET Now, several banking stocks offer attractive upside potential based on their target prices, with the sector remaining in focus as investors closely monitor loan growth, net interest margins (NIMs), deposit mobilisation, asset quality trends and management commentary.
ICICI Bank Ltd is priced at ₹1,421 with a target price of ₹1,731, while State Bank of India is trading at ₹1,097.20 with a target of ₹1,225. Axis Bank Ltd is valued at ₹1,238.00 with a target of ₹1,578. Among other major picks, Bank of Baroda shows 19.67% upside potential with a target price of ₹300 from current ₹250.70, and Canara Bank offers 17.47% upside with a target of ₹155 from ₹131.95. According to INDmoney data, these stocks maintain BUY analyst ratings across the board.
According to data compiled by INDmoney, Federal Bank Ltd has delivered the highest three-year return among the selected banking stocks at 305.98%. It is followed by Canara Bank with 326.47% and Union Bank of India with 415.01%. Other strong performers include Bank of Baroda at 208.93%, State Bank of India at 153.16%, ICICI Bank Ltd at 102.18%, Punjab National Bank at 196.28%, Axis Bank Ltd at 63.86%, and AU Small Finance Bank Ltd at 68.73% over the past three years.
The banking sector remains in focus as investors closely monitor loan growth, net interest margins (NIMs), deposit mobilisation, asset quality trends and management commentary amid the evolving interest rate environment. Strong fundamentals, digital banking initiatives and improving profitability continue to support sentiment across both private and public sector lenders. As reported by ET Now, the sector benefits from improving credit growth, healthy asset quality, strong capital positions and expectations of sustained earnings momentum, making it an attractive investment opportunity for analysts and investors. Recent analysis suggests that despite sustained periods of FPI selling, banking stocks have not corrected to the extent expected, with the sector showing relatively resilient performance.
