ICICI Bank, HDFC Bank, Yes Bank, Axis Bank shares fall after Q2 results; here’s why

Shares of private sector banks witnessed broad-based selling on Monday after ICICI Bank, HDFC Bank, Axis Bank and Yes Bank reported their September-quarter results over the weekend. The Nifty Private Bank index fell 1.64% to 27,246.35, with Axis Bank and HDFC Bank emerging as the top laggards amid a negative market reaction to their Q2 results.

Axis Bank shares fell as much as 5% to ₹1,225 on the NSE, while HDFC Bank declined 2.26% to ₹712.35. ICICI Bank shares slipped 0.84% to ₹1,385.30, and Yes Bank dropped 0.63% to ₹17.39.

Among other private lenders, Federal Bank fell 0.78% to ₹335.35, Kotak Mahindra Bank declined 0.78% to ₹443.90, and Bandhan Bank lost 0.78% to ₹166.20. IndusInd Bank slipped 0.44% to ₹873.10.

On the other hand, RBL Bank and IDFC First Bank bucked the trend, rising 0.07% and 0.05%, respectively.

Meanwhile, the Sensex and Nifty 50 were trading 0.3% lower each, tracking weak cues from Asian markets amid persistent concerns over rising crude oil prices and bond yields. Similarly, the Nifty Bank index fell nearly 0.5% .

In sharp contrast, the Nifty PSU Bank index rallied over 2%, emerging as the top performer on sectoral front, led by Punjab National Bank (PNB), which surged over 5. Canara Bank gained 3%, Union Bank of India rose 2.96%, and Bank of India advanced 1.96%. Bank of Baroda climbed 1.9%, while State Bank of India (SBI) rose 1.26%. Indian Bank, Punjab & Sind Bank and Central Bank of India also traded higher, while UCO Bank, Indian Overseas Bank and Bank of Maharashtra posted marginal gains.

How private banks performed in Q2

ICICI Bank reported a 20.1% year-on-year (YoY) increase in consolidated net profit to ₹14,843 crore for Q2 FY27, while net interest income (NII) rose 17.7% to ₹25,339 crore. Its net interest margin (NIM), however, narrowed to 4.18% from 4.30% a year earlier. Asset quality improved, with the gross non-performing asset (GNPA) ratio declining to 1.20% from 1.58% a year ago.

Axis Bank posted a 38% YoY increase in net profit to ₹7,003 crore, while NII rose 12% to ₹15,371 crore. Its NIM stood at 3.36%. The bank’s GNPA ratio improved to 1.16% from 1.46% a year earlier, while fresh slippages declined to ₹4,762 crore from ₹5,566 crore in the previous quarter.

HDFC Bank reported a 4.7% YoY rise in standalone net profit to ₹19,509.3 crore. NII increased 9.7% to ₹34,619.2 crore, while NIM stood at 3.16% on total assets and 3.32% on interest-earning assets. Its GNPA ratio improved to 1.11% from 1.24% a year earlier.

Yes Bank reported a 63.2% YoY increase in consolidated net profit to ₹1,084.08 crore. However, the reported results do not reflect the potential financial impact of the Supreme Court ruling on the bank’s write-down of Additional Tier-1 (AT1) bonds worth ₹8,415 crore. The bank said that, after restating the principal amount of the bonds, it would have reported a standalone net loss of ₹5,217 crore for the September quarter, instead of a profit of ₹1,080 crore.