Goldman Sachs forecasts "healthy" growth in new lending at three major Indian banks over the next six months, which it says could lead to a significant upside for these stocks. The Wall Street bank noted that Indian bank stocks have broadly outperformed the MSCI India index over the past year, but have underperformed over the last three to six months. Goldman Sachs said that valuation multiples for Indian banks have declined the most despite earnings per share (EPS) upgrades. HDB KOTAKBANK-IN,SBIN-IN YTD mountain However, Goldman Sachs expects operating profit to bottom out in the December quarter of 2023 as margins and growth rates stabilize. Goldman's view on the Indian banks Kotak Mahindra Bank Price target: 2,624 Indian rupees ($31.6).

---

Persons: Goldman Sachs, Rahul Jain, Hardik Shah, Goldman, ROA, ROE, CNBC's Naman Tandon Organizations: Mahindra Bank, State Bank of India, HDFC Bank, ICICI Bank, Mahindra Bank Price, SBI, HDFC Locations: India, United States