Talking STOCK:Since the financial crisis

SINCE THE financial crisis became acute in the West last year, the flight-to-safety syndrome has caught the banks worldover. The Indian banking sector has been no exception. With the banks in a deep freeze mode holding capital and going slow on lending to corporates as well as individuals, this has cast a shadow on shareholder's profits in the short-term. With the Reserve Bank of India easing policy rates signaling a change in its monetary stance, the sector is expected to emerge out of the credit contraction mode. SundayET takes a peek into the recommendations of top brokerage houses LARGE CAP  KRChoksey & Angel Broking  STATE BANK OF INDIA CMP: Rs 1,764  SBI standalone profits increased 42% to Rs 2,300 crore and consolidated profits increased 68%. Net interest income grew 3.8% to Rs 5024.9 crore. With its surplus liquidity and balance sheet size, SBI will be a major beneficiary of pickup in credit demand. Its non-banking business will benefit from uptick in capital markets and corporate activity.  ICICI BANK CMP: Rs 744  The bank has been focusing on cost control with staff expenses flattish and other operating expenditure falling by 10%. This was despite the bank opening 33 more branches. It plans to open 580 branches this quarter, without any increase in overall operating expenses due to further cost cuts in other divisions such as collections.  MID CAP  Sharekhan & FINQUEST Securities  ALLAHABAD BANK CMP: Rs 93  Allahabad Bank has reported a net profit of Rs302.9 crore in the first quarter of FY10, indicating a growth of 224.4%. The profit growth was mainly driven by a healthy top line growth, spike in treasury gains and marked-to-market (MTM) write-back. Also, the NIM expanded by 40 basis points to 3% during the quarter.  FEDERAL BANK CMP: Rs 227  Federal Bank's net profit for the first quarter of FY10 was in line with expectations. Net profit during the quarter grew 100%, mainly driven by treasury gains of Rs 58 crore and reversal of Rs 71-crore investment provision. The net NPA of the bank remained stable at 0.3%. We expect its profits to grow at a CAGR of 19% during FY09-FY11.  SMALL CAP  Angel Broking & Sushil Finance  SOUTH INDIAN BANK CMP: Rs 118  South Indian Bank (SIB) is one of the better-performing old private sector banks. It is largely concentrated in the semi-urban areas of the southern states of India. The bank's deposit franchise includes a niche NRI customer base that contributes a 17% to deposits and gives it a distinguishing cost advantage over its peers.  CITY UNION BANK CMP: Rs 26  It is one of the oldest private sector banks and has a business size of Rs 13,900 crore. It has a track record of profitability in all 100+ years of operations. It operates with 100% independent and professional directors and no promoter. It is one of the most efficient banks in terms of employee productivity and operating efficiency.