Private Sector Lenders Post Mixed Results in September Quarter

India's three largest private lenders posted mixed performances in the September quarter of FY27, with varying results across earnings, profit, and credit growth.

ICICI Bank

ICICI Bank reported a 20.1% year-on-year rise in standalone net profit to ₹ 14,843 crore for Q2 FY27. Net interest income grew 17.7% to ₹ 25,339 crore, while the net interest margin declined 12 basis points sequentially to 4.18%. Nuvama Institutional Equities retained a 'Buy' rating on the bank with a target price of ₹ 1,850, highlighting credit growth of 30% year-on-year. Systematix Institutional Research also kept a 'Buy' rating and raised its target price to ₹ 1,750.

HDFC Bank

HDFC Bank posted a 4.7% year-on-year increase in standalone net profit to ₹ 19,510 crore, while its net interest margin on earning assets dropped eight basis points sequentially to 3.32%. The bank's gross non-performing asset ratio improved to 1.11% from 1.17% in the previous quarter. The lender is preparing for a leadership transition with Anup Bagchi set to take over as managing director and chief executive. Nuvama retained a 'Buy' rating with a target price of ₹ 950, and Systematix kept its 'Buy' rating with an unchanged target of ₹ 875.

Axis Bank

Axis Bank recorded a 37.6% year-on-year jump in standalone net profit to ₹ 7,003 crore. Net interest income rose 12% to ₹ 15,371 crore, and operating profit increased 6% to ₹ 11,083 crore with a net interest margin of 3.36%. Nuvama retained a 'Buy' rating with a target price of ₹ 1,650, noting credit growth of 22% year-on-year alongside a 7% profit miss against its estimates due to lower treasury gains and higher staff costs.

Context

Major private sector banks regularly report quarterly earnings that are closely tracked by institutional brokerages to gauge the health of corporate lending and retail credit demand in India. These evaluations typically focus on key metrics such as net interest margins, loan growth, and asset quality ratios to determine stock ratings. Market analysts use these periodic updates to adjust target prices based on macroeconomic conditions and internal bank performance.