Yes Bank emerges as the only top-10 private lender with no ‘buy’ calls

The report further notes that Yes Bank’s NIM is expected to stay below 3 percent, which is relatively low for a bank.

At the same time, the bank’s high operating costs keep its cost-to-income (C/I) ratio elevated, likely keeping return on equity (RoE) under 10 percent in the medium term, the report added.

By contrast, the top three private sector lenders continue to enjoy strong analyst confidence, with no sell ratings from brokerages.

HDFC Bank and ICICI Bank lead the pack, with 46 and 48 ‘buy’ ratings, respectively, and no ‘sell’ calls.

Axis Bank also remains a top pick, drawing 42 ‘buy’ ratings and no ‘sell’ recommendations.

Other large private banks show a more mixed picture. Kotak Mahindra Bank has 28 ‘buy’ and 4 ‘sell’ calls. Interestly Kotak has more sell recommendations compared to it's mid-sized peer, Federal Bank. Federal Bank enjoys 35 ‘buy’ recommendations and just 1 ‘sell’, indicating robust investor confidence.

As pointed out earlier, IndusInd Bank has 7 ‘buy’ and 22 ‘sell’ recommendations, making it the second bank stock with highest number of sell calls. Analysts on Bloomberg have turned increasingly cautious on IndusInd Bank over the past three years, marking a sharp shift from the optimism seen in 2022–23 when most brokerages maintained ‘buy’ ratings backed by expectations of steady loan growth, stable margins, and improving asset quality.

The sentiment began to sour through 2024–25 as concerns over governance surfaced following accounting discrepancies linked to the bank’s derivatives book, triggering a series of downgrades across brokerages. By mid-2025, the consensus had flipped, with only about 10 analysts retaining ‘buy’ calls compared to over 20 ‘sell’ or ‘reduce’ recommendations.

IDFC First Bank and Bandhan Bank too maintain a relatively balanced outlook, with 15 and 11 ‘buy’ ratings, and 3 and 6 ‘sell’ calls, respectively.

However, no information on IDBI Bank's ratings was reported by Bloomberg brokerages during the period.

Analyst sentiment for RBL Bank currently stands out with 12 ‘Buy’, 6 ‘Sell’ and 3 ‘Hold’ recommendations, indicating a generally positive tilt but cautious optimism. While a majority of analysts expect the bank to benefit from improving deposits and business momentum, the presence of six ‘Sell’ calls maybe signalling some concern from the analysts.

As of November 2025, the NIFTY Bank index is trading around the 57,800–58,000 level. Over the past year, the index has recorded modest gains of roughly 7-13 percent.

According to a report by Motilal Oswal Financial Services, despite these gains, recent momentum in the index has been mixed, with the sector showing signs of consolidation after earlier advances.

Banking stocks continue to face headwinds from margin pressures, elevated operating costs, and asset-quality concerns, which have restrained sharp acceleration in returns despite the broader market rally, the report added.