Bank stocks bounced back on Tuesday, with the Nifty Bank index gaining almost 1% after several banks shared upbeat quarterly results.
Overall market move
The index had fallen 0.18% on Monday but recovered most of that loss on Tuesday, marking its fifth rise in six sessions.
Top gainers
- ICICI Bank jumped up to 3%.
- Union Bank of India rose about 2.55%.
- IndusInd Bank climbed around 1.9%.
- State Bank of India, Axis Bank, Canara Bank and Yes Bank each gained roughly 1.5%.
HDFC Bank lags
HDFC Bank fell to ₹956, its lowest in over three months, after slipping more than 4% in two sessions. Its provisional Q3 update showed 11.9% year‑on‑year loan growth and 11.5% deposit growth, but slower deposit growth limited loan expansion.
Axis Bank’s strong showing
Axis Bank posted a 14.1% rise in gross advances and a 15% rise in deposits for the December quarter, the biggest gain since July 2024. Analysts note that while corporate lending picked up, retail demand is still recovering.
IndusInd Bank outlook
IndusInd Bank reported a fourth straight quarter of falling loans, signaling ongoing weakness. Analysts expect the bank to stabilize by FY26 and improve in FY27 under new leadership, with current valuations looking attractive for a turnaround.
What investors should note
The mixed earnings updates suggest that while some banks are seeing solid loan and deposit growth, others face pressure from high credit‑deposit ratios. Keep an eye on each bank’s balance‑sheet health as the earnings season continues from January 12.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.