HDFC Bank Top Pick, ICICI Bank Next Best: BNP Paribas Analyst

• BNP Paribas analyst Santanu Chakrabarti favors large private banks, naming HDFC Bank as his top pick and ICICI Bank as a close second.
• HDFC Bank's topline growth met expectations, and margin expansion post-merger reinforces its investment thesis, with liability structure improving.
• ICICI Bank is a preferred choice due to its strong track record and stable leadership, expected to support performance over the next year.
• Chakrabarti notes potential near-term pressure on ICICI Bank due to retail loan growth and savings account accretion weakness, but sees it as a buying opportunity.
• He is cautious on PSU banks, including State Bank of India, due to concerns about the sustainability of low credit costs and their impact on future earnings.

Why It Matters: BNP Paribas analyst picks HDFC Bank as top choice, ICICI Bank second, but warns on PSU bank sustainability.