Ultimate Ranking — Residual Income Valuation

One rating per bank. Where Buoyant has a published view it is the view; the platform model only fills the gaps, and is labelled where it does.

This is a single house view, not a menu of opinions. Precedence is Buoyant's Sep-2026 model first, then its initiating coverage, then — only where neither exists — the platform's own residual income model, clearly marked. Where the model disagreed with Buoyant it was the model that was wrong: the earlier build compared fair value against a P/B column that did not reconcile to price ÷ book, which is now recomputed as market cap ÷ book and ties to Buoyant's core P/B within 0.14x.

Equity value = book value + PV of residual income (FY27E–FY31E explicit, then a terminal). Terminal ROE is derived — normalised ROA × capital-normalised leverage, with credit cost mean-reverted to a peer-group through-cycle level and excess CET1 released — not assumed. COE is bank-specific and size-adjusted. Fair value is compared against the core P/B excluding subsidiaries where a subsidiary value exists.

Validation: against Buoyant's own analyst RIM on the four banks it covers, mean absolute gap is 0.11x on fair P/B and 1.05pp on sustainable ROE (Axis matches exactly at 1.73x). This is a valuation framework, not a recommendation, and ratings are mechanical bands on modelled upside.

size bucketSFB economics are not comparable to universal banks — rank within bucket, not across.

BUY

HDFC, Axis, IDFC, Bank, Canara

ACCUMULATE

Jana

HOLD

ICICI, State

REDUCE

Kotak

SELL

IndusInd, Punjab, Bandhan, AU, Yes

#	Bank	Bucket	Rating	Target	Upside	Sust. ROE	Street ROE	vs street	Basis	Conviction
1	HDFC Bank	Large	BUY	900	26.7%	16.0%	14.5%	+1.5pp	Buoyant Sep-2026 model — probability-weighted target	House model
2	Axis Bank	Large	BUY	1464	15.6%	15.5%	—	—	Buoyant Sep-2026 model — probability-weighted target	House model
3	ICICI Bank	Large	HOLD	1417	-0.7%	16.5%	15.3%	+1.2pp	Buoyant Sep-2026 model — probability-weighted target	House model
4	Kotak Mahindra	Mid	REDUCE	393	-7.0%	15.0%	11.6%	+3.4pp	Buoyant Sep-2026 model — probability-weighted target	House model
5	IDFC First Bank	Mid	BUY	90	18.0%	—	7.1%	—	1.5x FY28E Adj. BV	House coverage
6	Jana Small Finance	SFB	ACCUMULATE	555	12.0%	—	—	—	1.0x FY28E adjusted book (Rs 554) + excess-return DCF cross-check	House coverage
7	Bank of Baroda	Large	BUY	—	31.1%	13.1%	—	—	Platform RIM — no published Buoyant view for this bank	Model only — not a house call
8	Canara Bank	Large	BUY	—	26.3%	18.4%	—	—	Platform RIM — no published Buoyant view for this bank	Model only — not a house call
9	State Bank of India	Large	HOLD	—	-17.4%	13.4%	14.5%	-1.1pp	Owned at Core weight (31-Jul-2026 disclosure); the model's negative reading is shown as a cross-check only and does not override the position	Held position — house is constructive, no published target
10	IndusInd Bank	Mid	SELL	—	-26.7%	11.3%	6.4%	+4.9pp	Platform RIM — no published Buoyant view for this bank	Model only — not a house call
11	Punjab National Bank	Large	SELL	—	-36.3%	9.3%	—	—	Platform RIM — no published Buoyant view for this bank	Model only — not a house call
12	Bandhan Bank	SFB	SELL	—	-40.1%	10.7%	11.6%	-0.9pp	Platform RIM — no published Buoyant view for this bank	Model only — not a house call
13	AU Small Finance	SFB	SELL	—	-80.3%	13.2%	16.0%	-2.8pp	Platform RIM — no published Buoyant view for this bank	Model only — not a house call
14	Yes Bank	Mid	SELL	—	-89.1%	4.3%	8.9%	-4.6pp	Platform RIM — no published Buoyant view for this bank	Model only — not a house call

Ranked by conviction tier first, then rating. The six Buoyant-covered names lead; the eight without a published house view follow and are labelled Model only — they are diagnostics, not recommendations, and their modelled upside is haircut for the caveats attached to it (Canara's raw +97% becomes +26% once its 16x leverage and 3.6% gross NPA are discounted, exactly as the sector briefing says an analyst would).