Citigroup has upgraded YES Bank and HDFC Bank to “buy’’ from “neutral’’.
The broker has raised the target prices across its coverage on banks as it rolls forward to September 2016 estimates and raised the multiples.
Citigroup says Indian banks are bets on macro improvement, asset quality and loan growth.
It adds that top down trade is done, asset quality and loan growth are trades to play for.
Citigroup has highlighted HDFC Bank, State Bank of India, ICICI Bank and Axis Bank as top picks for asset quality leverage.