Sharekhan by BNP Paribas analyst Rahul Malani’s top picks for large private banks are Axis Bank, ICICI Bank, and HDFC Bank. In the mid-tier, they like Federal Bank, and in small banks, they like AU Small Finance Bank. In the NBFC space, Mahindra Finance is posting strong momentum, while for Bajaj Finance, its AUM growth rate is sustainable but has already been discounted by the market. For diversified NBFCs, Chola Finance, M&M Finance, and Bajaj Finance are favorable, and for HFCs, HDFC Ltd and CanFin Home are preferred.
