Bank Stock to Buy for Long Term: India’s top lenders-State Bank of India (SBI), HDFC Bank, and ICICI Bank-remain the backbone of the country’s banking system and the most sought-after names among long-term investors.
As credit growth stabilises, interest-rate expectations shift, and asset quality trends improve, investors increasingly want to know which of these three giants offers the best balance of stability, growth and value over the next several years.
HDFC Bank stock has delivered steady but moderate returns across time frames, with the scrip up 14.76% in a year, 3.60% in 6 months, 1.72% in 3 months, and 0.44% in a month. The performance reflects stability rather than strong upside, keeping the stock largely range-bound. In contrast, ICICI Bank shows clear near-term weakness despite its long-term strength. The bank stock is up only 7.07% in a year, but has declined 5.61% in 6 months, 4.73% in 3 months, and 0.68% in 1 month, highlighting persistent short-term pressure on the stock.
PSU bank stock SBI stands out as the strongest performer among the three lenders in every time frame. The PSU giant has surged 18.94% in a year, with powerful gains of 22.78% in 6 months, 18.91% in 3 months, and 7.31% in 1 month. Its consistently higher returns across all durations make SBI the clear outperformer, significantly ahead of both HDFC Bank and ICICI Bank in medium- and short-term momentum.
Market experts are broadly optimistic about all three lenders, but each bank offers a distinct advantage depending on investor goals. Here is how the fundamental and technical picture stacks up.
Fundamental View: Strong and Steady Across the Board
Global brokerage Jefferies has maintained a Buy rating on all three banks, though it sees the maximum upside potential in HDFC Bank.
HDFC Bank: Jefferies has a target price of ₹1,200, signalling a 20% upside. Jefferies expects the bank’s loan growth to stay in line with system averages, supported by merger synergies, a strong retail franchise and a sticky deposit base.
ICICI Bank: The global brokerage has pegged the target price at ₹1,760, implying almost 29% upside. Jefferies said, “ICICI Bank continues to deliver best-in-class profitability among large private peers,” citing its risk-adjusted returns and balanced retail/SME growth.
SBI: A target price for SBI shares has been set as ₹970 by the brokerage, signalling a flat upside. Jefferies wrote that SBI’s improving return ratios, capital adequacy, and deep deposit franchise “make it a steady compounder.”
Overall, Jefferies sees strong and consistent earnings visibility for all three names.
Meanwhile, Motilal Oswal Financial Services (MOSL) continues to prefer all three heavyweight banks. The brokerage emphasises that these lenders possess resilient balance sheets, solid capital buffers and healthy asset quality-traits that are critical in a period marked by macro uncertainties.
In its latest report, MOSL stated, “In light of these sectoral headwinds, we continue to prefer ICICI Bank, HDFC Bank, and SBI. These banks stand out due to their strong balance sheets, healthy PCR, and relatively better growth prospects, which are expected to help mitigate downside risks to earnings.”
Om Ghawalkar, Market Analyst at Share.Market, however, said the final choice depends on an investor’s priority-be it growth, stability or valuation.
ICICI Bank is best suited for growth-focused investors seeking consistent retail credit expansion and stable asset quality.
HDFC Bank remains a premium franchise with a strong digital presence and a bullish cup-and-handle pattern forming-suggesting a potential breakout after consolidation.
SBI offers the best value and strongest market momentum, having gained more than 15% since September 2025 and showing impressive relative strength despite its PSU status.
Technical View: SBI Leads
From a technical analysis standpoint, experts favour SBI as the strongest candidate for long-term accumulation.
Amruta Shinde, Research Analyst at Choice Broking, highlighted SBI’s robust chart structure, noting that the stock maintains a sustained higher-high, higher-low pattern. She said, “Based on the current technical setup, SBI remains the strongest contender among the three for long-term investors.”
Shinde added that SBI trades comfortably above key EMAs, and a breakout above ₹980 could unlock upside toward ₹1,030. She also said HDFC Bank is showing encouraging signs of recovery, but remains range-bound between ₹975- ₹1,020, requiring a decisive move above ₹1,020 to confirm strength. On the other hand, ICICI Bank is showing weaker momentum, trading below short and medium-term EMAs, and needs to break above resistance levels to regain leadership.