New Delhi, Sept. 5 -- Banking stocks ICICI Bank, HDFC Bank, and State Bank of India (SBI) are top invetsment ideas domestic brokerage house Motilal Oswal Financial Services (MOSL) has named to play the upcoming earnings recovery in the banking sector. These lenders are best placed to deliver superior returns as earnings momentum strengthens, it added.

As per the brokerage, Indian banks are nearing the bottom of their earnings cycle, with a meaningful turnaround expected from the second half of FY26. MOSL noted that profitability in recent quarters has been largely supported by non-core treasury gains as net interest income (NII) growth slowed sharply due to aggressive loan repricing and elevated funding costs, leading to a 1 percent year...