Finance1 min read

Diwali 2026: Will banking stocks shine in Samvat 2083? Analysts list top picks

By · Published by Everything Blog

In short

Financial institutions are entering the new Hindu accounting year following a volatile period that saw index levels retreat despite selective public-sector gains. Analysts expect a favorable operational backdrop underpinned by resilient loan demand, softer borrowing costs, and steady credit metrics. Market outperformance is projected to concentrate in institutions that balance disciplined deposit pricing with prudent asset expansion. Ventura's Vinit Bolinjkar highlighted that banks are specifically emphasizing careful pricing strategies to preserve margins and bolster lagging deposit growth.

Key points

  • Credit growth is expected to remain stable across retail, corporate, and small business b…: Credit growth is expected to remain stable across retail, corporate, and small business borrowing segments.
  • Brokerages including SBI Securities and Angel One selected ICICI Bank as a top pick for i…: Brokerages including SBI Securities and Angel One selected ICICI Bank as a top pick for its robust profitability and resilient margins.
  • Analysts favor Karur Vysya Bank due to strengthening asset quality and expected net inter…: Analysts favor Karur Vysya Bank due to strengthening asset quality and expected net interest margins between 3.7% and 3.8% for FY27.

Sources checked by our analysis pipeline: 1

The Nifty Bank index hovered around 58,000 during last Diwali, celebrated around October 20, 2025. The index briefly crossed 61,000 in February before dropping below 50,000 in April. The index currently hovers around 55,500.

HDFC Bank's seesaw trade

This came as several heavyweight banking stocks saw sharp upturns and downturns. The most notable among them was volatility in HDFC Bank shares. India’s largest private lender saw a sharp drop in share price after the bank’s former part-time Chairman Atanu Chakraborty resigned, saying some practices within the bank did not align with his personal values and ethics.Later the stock recovered some of the losses as the leadership worries were addressed. The company appointed ICICI Group veteran Anup Bagchi as its MD & CEO, replacing Sashidhar Jagdishan whose term ended in October. Despite the recovery, the stock is down nearly 28% since Diwali last year.

Also read |Diwali 2026: 77 stocks knock down D-St bears to deliver multibagger returns of up to 4,700% in a year

Yes Bank, however, tops the list in terms of losses as the stock has fallen more…

Finance