ICICI Bank, Bank of Baroda and Canara Bank still have some steam left: JM Financial

“I think ICICI Bank scores on both counts, liability growth should be strong, margins - they have managed well, now only incremental rerating trigger on ICICI is, we believe, as gross slippages come off, that could lead to a structural further rerating on ICICI Bank. We are quite confident given the quality of the book they have been underwriting with respect to retail as well as corporate.”

He continues to like ICICI Bank even at its current levels. “It remains our top pick in the large caps,” he said.

Bhise also has a buy rating on Bank of Baroda (BoB) and Canara Bank. He believes there is still some steam left in terms of further upside from the current market price in BoB.

“We have a buy call on both Bank of Baroda (BoB) and Canara Bank. We think BoB has still some steam left with respect to the further upside from the current market price. In a way, BoB was slightly late to kind of enter the ROA expansion phase vis-à-vis Canara Bank. So, in terms of the pecking order, after State Bank of India (SBI), we like BoB.”