Private sector lenders in the country are set for market share gain amid strong growth, says Morgan Stanley.
"A golden age is in making for private lenders," the brokerage said, adding that strong balance sheets will help such banks to grow assets.
Morgan Stanley expects private lenders' earnings per share (EPS) to rise by more than 20 per cent over the next 2-3 years. It says this growth is not priced in valuations indicating headroom for stock prices.
Axis Bank (target Rs 700), HDFC Bank (rs 1,250), LIC Housing Finance (Rs 565), SKS Microfinance (Rs 520), IndusInd Bank (Rs 1,000), HDFC (Rs 1,380) and Yes Bank (Rs 930) are among the top picks for Morgan Stanley