Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting December 15, 2025) are SBI Life, and RBL Bank. Let’s take a look:
SBI LifeSBI Life is expected to sustain steady operating performance with strong growth in Annual Premium Equivalent (APE) and Value of New Business (VNB), supported by a favorable product mix shift toward protection and non-par offerings. VNB margin improved to 27.9% in Q2FY26, even after a 70–80bp drag from the GST-related input tax credit loss in 1HFY26. Momentum remains robust in high-margin categories, with individual protection rising 24% YoY and non-par savings and annuity segments growing 40–50%. Persistency has strengthened, and assets under management increased 10% YoY to ₹4.8tn, reinforcing long-term earnings potential. Management maintains confidence in achieving 13–14% individual APE growth for FY26 and reiterates its 26–28% VNB margin outlook, expecting product mix improvements, higher rider penetration, and cost efficiencies to offset GST-related pressures. Structural shifts toward protection, non-par products, and digital sourcing continue to support sustained value creation.RBL BankRBL Bank’s growth prospects improve meaningfully with Emirates NBD’s proposed USD3 billion investment, giving ENBD a 60% promoter stake that will rise to 62% once its India branches merge with the bank. The infusion strengthens RBK’s net worth and brings a highly profitable global partner with strong capabilities in funding, corporate banking, remittances, treasury, and risk management.Operational metrics are trending positively, with margins, asset quality, and profitability improving on the back of better liability management and a more balanced asset mix. Growth remains solid as the bank deliberately slows unsecured lending and scales secured products including MSME, gold loans, SME and mid-corporate, tractors, affordable housing, and secured business loans. With easing macro pressures, a more secure loan book, ENBD’s expertise, and rising operating leverage, RBL is positioned for stronger, more diversified, and more profitable expansion.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
