Buy, Sell Or Hold: HDFC Bank, ICICI Bank, State Bank of India, Axis Bank, Kotak Mahindra Bank — Analyst Forecast

Updated: 23 Sept 2026 • 5:21 pm

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Analyst Forecast

Sector Snapshot (23 September 2026)

Stock	LTP (Rs)	52W High	52W Low	P/E vs Industry	ROE	Our View
HDFC Bank	737.25	1,020.50	681.90	13.81 / 12.22	13.14%	Buy on Dips
ICICI Bank	1,340.00	1,480.00	1,187.55	16.09 / 12.22	15.00%	Hold
State Bank of India	994.10	1,234.70	851.10	10.15 / 12.22	14.29%	Buy on Dips
Axis Bank	1,243.20	1,418.30	1,125.40	13.85 / 12.22	12.53%	Hold
Kotak Mahindra Bank	413.25	453.20	345.40	20.22 / 12.22	11.06%	Hold

Quick Answer

State Bank of India and HDFC Bank stand out among these banks stocks, both trading below or close to the industry average price-to-earnings ratio while posting return on equity above 13%, with HDFC Bank additionally sitting close to its 52-week low. ICICI Bank has the strongest return on equity in the group but at a richer valuation, while Kotak Mahindra Bank carries the highest multiple alongside the weakest return on equity here.

India's large private and public sector banks are shaped by credit growth, net interest margins and asset quality trends, with valuations that can diverge meaningfully even among close peers. This piece checks five listed banks stocks on where they stand today.

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Table of Contents

HDFC Bank: Buy on Dips

HDFC Bank has corrected to Rs 737.25, down close to 28% from its 52-week high of Rs 1,020.50 and near its low of Rs 681.90. It trades at a price-to-earnings ratio of 13.81, modestly above the industry average of 12.22, with a return on equity of 13.14%. With India's largest private bank trading this close to its 52-week low, this looks like one of the more attractive banks stocks to accumulate on dips.

ICICI Bank: Hold

ICICI Bank is at Rs 1,340.00, down about 9% from its 52-week high of Rs 1,480.00. It posts the strongest return on equity in this group at 15.00%, but its price-to-earnings ratio of 16.09 is also the richest here, well above the industry average of 12.22. That premium already reflects much of the bank's strong profitability, which keeps this in hold territory rather than a fresh buy.

State Bank of India: Buy on Dips

State Bank of India trades at Rs 994.10, down about 19% from its 52-week high of Rs 1,234.70. It combines a healthy return on equity of 14.29% with a price-to-earnings ratio of just 10.15, the cheapest in this group and below the industry average of 12.22. That mix of strong profitability and a discounted valuation makes it the standout banks stock to watch for accumulation.

Axis Bank: Hold

Axis Bank is at Rs 1,243.20, down about 12% from its 52-week high of Rs 1,418.30. It trades at a price-to-earnings ratio of 13.85, modestly above the industry average of 12.22, with a return on equity of 12.53%. There is nothing alarming here, but nothing compelling enough to stand out either, which makes this a straightforward hold.

Kotak Mahindra Bank: Hold

Kotak Mahindra Bank trades at Rs 413.25, down close to 9% from its 52-week high of Rs 453.20. It carries the richest valuation in this group at a price-to-earnings ratio of 20.22, well above the industry average of 12.22, while its return on equity of 11.06% is the weakest among these banks stocks. That gap between a premium valuation and comparatively modest profitability keeps this in hold territory.

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What Ties These Banks Stocks Together

Across these banks stocks, State Bank of India and HDFC Bank currently offer the more attractive combination of a reasonable to cheap valuation and solid return on equity, while ICICI Bank's strong profitability comes at the richest multiple among the private banks and Kotak Mahindra Bank pairs its own premium valuation with the weakest returns in this group. Credit growth, deposit costs and asset quality trends can all shift these numbers from one quarter to the next.

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Conclusion

Banks stocks in India currently show HDFC Bank and State Bank of India as the more reasonably valued picks worth accumulating on dips among these banks stocks, while ICICI Bank, Axis Bank and Kotak Mahindra Bank are more reasonable holds for now given their fuller valuations. As always, treat this as a starting point rather than a final word.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Stock market investments are subject to market risks. Please verify all data independently and consult a SEBI-registered investment adviser before making any investment decisions. Univest Financial Services Private Limited, SEBI Registered Investment Adviser, Registration No. INH000013776.

Frequently Asked Questions

A few common questions on these banks stocks, answered briefly below for quick reference on this banks stocks basket.

Which banks stocks look attractive right now?

State Bank of India and HDFC Bank currently show the most favourable combination of valuation and return on equity among the names covered here, with HDFC Bank additionally trading close to its 52-week low.

Is State Bank of India cheap compared to private banks?

Yes, State Bank of India trades at a price-to-earnings ratio of 10.15, the lowest among these banks stocks and below the industry average of 12.22, while still posting a healthy 14.29% return on equity.

Why does ICICI Bank trade at a premium?

ICICI Bank posts the strongest return on equity in this group at 15.00%, which has led the market to price it at a premium to the industry average, making it a hold rather than a bargain at current levels.

Is Kotak Mahindra Bank overvalued?

Kotak Mahindra Bank trades at the richest price-to-earnings ratio in this group while posting the weakest return on equity, a combination that keeps it in hold territory rather than a clear buy.

How does credit growth affect bank stock valuations?

Faster loan growth typically supports higher return on equity for banks, but it can also raise questions about asset quality down the line, which is why analysts weigh growth alongside net interest margins and provisioning trends.

Where can I track these banks stocks in real time?

You can track live prices, set price alerts, and follow quarterly results for HDFC Bank, ICICI Bank, State Bank of India, Axis Bank and Kotak Mahindra Bank using the Univest iOS App and Univest Android App.