New Delhi, March 20 -- FY25 has proven to be a difficult year for the banking sector, with the Bank Nifty index delivering a return of 2.6 per cent compared to the Nifty 50's modest 0.8 per cent gain.

Despite these challenges, several banking stocks have posted double-digit gains, including HDFC Bank (18 per cent), ICICI Bank (16 per cent), Kotak Mahindra Bank (12 per cent), and Federal Bank (18 per cent).

In a recent note, Motilal Oswal Financial Services (MOSL) anticipated that FY26 will begin on a softer note with decelerating earnings in the first half. The brokerage, however, expects banks to witness an earnings recovery. Supported by reasonable valuations, these factors could create attractive investment opportunities throughout t...