Motilal Oswal picks HDFC Bank (target ₹1,100), ICICI Bank (₹1,750), SBI (₹1,300), and AU Small Finance Bank (₹1,275) for Q1 earnings. AlphaScala scores HDB 46, IBN 57.
Motilal Oswal Financial Services named four banking stocks as top picks ahead of the April-June earnings season. The brokerage said its channel checks point to a pickup in MSME credit demand, with working capital cycles lengthening. Private banks hold a larger share in higher ticket loans. Public sector banks are gaining incremental market share through competitive pricing and CGTMSE-backed lending, Motilal Oswal added.
Unsecured business loan demand has risen. Housing loan demand is slowing. Asset quality has held up despite inflation, according to the brokerage.
HDFC Bank is a top pick in commercial vehicle lending and loan against property. Motilal Oswal also highlighted its asset quality. The stock rose 7% in one month. It is down 20% year to date in 2026. The brokerage set a target of ₹1,100 with a Buy rating.
ICICI Bank was also a top pick in loan against property and asset quality.
ICICI Bank continues to have a competitive edge on the back of superior tech capabilities and offers better overdraft facilities.
Motilal Oswal said. The brokerage has a Buy rating and a target of ₹1,750.
State Bank of India was Motilal's preferred PSU pick for its execution and growth trajectory. It is also the top pick in housing loans.
Among the PSBs, SBI remains the most aggressive, offering competitive pricing, improved TAT, and lending under the CGTMSE scheme. Lending based on the CGTMSE scheme involves continuous monitoring of stock reports, cash flows, and debtor lists, reflecting strong underwriting practices.
Motilal Oswal set a Buy call on SBI with a target of ₹1,300.
AU Small Finance Bank was the fourth pick. Motilal Oswal called it a strong player in the retail segment with industry-leading growth, a granular asset book, and strong collection infrastructure. The brokerage has a Buy rating and a target of ₹1,275.
Axis Bank holds a significant market share among smaller wholesale players in Surat's textile industry, the brokerage said. Those players face stretched working capital and reduced margins. Motilal Oswal has a Neutral rating on Axis with a target of ₹1,475.
Motilal Oswal also has Buy ratings on Bandhan Bank, DCB Bank, Equitas Small Finance Bank, RBL Bank, and Kotak Mahindra Bank.
AlphaScala's scoring system gives HDFC Bank a score of 46 out of 100, labelled Mixed. ICICI Bank scores 57, Moderate. Both trade in the Financial Services sector. For readers tracking these ahead of earnings, the broker's calls face a test when the numbers land. See HDFC Bank stock page and ICICI Bank stock page for AlphaScala's full profiles. Broader stock market analysis covers sector-level trends.
The views expressed are those of the brokerage. They do not represent AlphaScala's recommendations.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.