Strong rally in ICICI Bank, HDFC Bank propel Nifty over 24,000

Shares of top private lenders HDFC Bank and ICICI Bank surged to record highs on the NSE, after both reported robust fourth-quarter results, with sustained loan growth and improved asset quality exceeding market expectations. Strong Q4 earnings from top private banks sparked a rally on the NSE, lifting the Nifty 50 sharply higher on Monday. The index rose 1.31% to surpass the 24,000-mark, hitting 24,166.90, while Bank Nifty surged 2.06% to a record 55,433.60.

HDFC Bank rose more than 2% on the NSE to a 52-week high of ₹1,950.70, while ICICI Bank also hit an all-time high surging 2% to ₹1,436. YES Bank also saw a sharp uptick, climbing over 7% on the back of improved earnings.

While HDFC Bank and ICICI Bank are those that already have released their quarterly results, IndusInd Bank , IDFC First Bank and AU Small Finance Bank have also risen as much as 6.15%, 5.33% and 4.52% respectively on the NSE today.

The market gains underscored renewed investor optimism in financials, particularly private sector banks, which have continued to outperform expectations despite macroeconomic uncertainties.

Strong Q4 earnings drive ICICI Bank, HDFC Bank and Yes Bank to record highs

HDFC Bank posted a steady performance in the March quarter (Q4 FY25), reporting a 7% year-on-year (YoY) rise in net profit to ₹17,620 crore. Net interest income (NII) grew 10.3% YoY to ₹32,060 crore. Loan growth remained moderate at 13.3% YoY, while deposit growth picked up pace at 14%. Gross non-performing asset (GNPA) ratio improved 9 basis points QoQ to 1.33%, while net NPA (NNPA) fell 3 basis points to 0.43%. Considerable improvements in credit metrics have led to a surge in investor optimism, with brokerages issuing strong Buy recommendations.

ICICI Bank delivered a strong performance for the fourth quarter ended March 31, 2025, backed by consistent profitability, improving asset quality, and strong capital buffers. The consolidated profit after tax (PAT) surging 15.7% year-on-year to ₹13,502 crore. Growth was supported by stable operating expenses and steady other income. Net interest income (NII) rose 11% year-on-year, reflecting higher yields and strong loan growth. Asset quality remained robust, with the net non-performing asset (NPA) ratio improving to 0.39%, compared to 0.42% in the previous quarter. The bank also maintained a strong capital position, with a total capital adequacy ratio of 16.55% and a Common Equity Tier-1 (CET-1) ratio of 15.94% on a standalone basis, after accounting for the proposed dividend.

Aside from the two top private lenders, YES Bank reported a 63% year-on-year (YoY) surge in net profits to ₹738.1 crore, compared to ₹451.9 crore in the same quarter last year. The bank’s net advances grew 8.1% YoY and 0.6% QoQ to ₹2,46,188 crore. Fresh disbursements stood at ₹27,734 crore for the March quarter and ₹97,899 crore for the full fiscal year.