Jefferies flags top 4 bank stocks as RBI norms set to fuel credit uptick

The RBIs decision to keep interest rates steady at 5.5% and maintain a neutral liquidity stance offers relief to banks, limiting potential margin compression. Its measures to ease lending restrictions support credit growth. Jefferies recommends large private banks -- HDFC Bank, Axis Bank, ICICI Bank -- and SBI among PSU banks, citing strong capital buffers and better positioning for the ECL transition.