ICICI Bank's Q4 earnings beat estimates, with analysts projecting 15-20% growth over the next two years.
The forecast sits above the sector average of 12% growth, underscoring a robust earnings trajectory for private banks.
Rahul Arora, CEO of Ashika Institutional Equities, noted that while earnings have outpaced expectations, valuations remain reasonable amid recent volatility.
Arora highlighted ICICI Bank as the sector leader, citing superior return ratios, and added that other private banks are likely to grow between 15% and 20%.
He added that oil prices near $70 per barrel and easing geopolitical tensions could further buoy emerging markets, including India.
Investors should watch the upcoming US midterm elections, which could act as a catalyst for market sentiment, while private banks continue to deliver healthy earnings growth.