The brokerage argued that the profitability downcycle, marked by several quarters of net interest margin (NIM) compression and elevated credit costs, is now behind the sector.
Stocks to buy: Ajit Mishra of Religare Broking recommends buying Axis Bank, Glenmark Pharma, and United Spirits; also suggests Nifty trading strategy
The company is looking to raise 20 billion rupees through debentures and 30 billion rupees via a green shoe option
IIFL Capital forecasts flattish earnings for banks in FY26, but expects a strong rebound in FY27-28, with earnings CAGR of 21 per cent for private banks and 14 per cent for PSUs
UBS believes Axis Bank has moved past the most challenging phase of its operating cycle and is now positioned for a gradual re-rating.