MACQUARIE ON FINANCIALS

Expect FY26 to show better loan growth and stable year

Slight moderation in margins and stable credit costs exoected

Large private banks-solid 16-17% EPS and 16-17% ROEs

NBFC select risk-reward

Insurance-regulatory overhang

LIC Upgraded from Neutral to Overweight, TP at 1215 (from 1200)

ICICI Lombard Upgraded from Neutral to Overweight, TP at 2255 (from 2000)

SBI Life Downgraded Overweight to Neutral, TP at 1435 (from 1830)

PB Fintech Downgrdaed from Neutral to Underweight TP at 1530 (from 1220)

Top picks HDFC Bank, ICICI Bank, Aditya Birla Capital, PFC, Shriram Housing Finance