Latest News on HDFC Bank
Kotak Mahindra Bank Denies Involvement in IDBI Bank Disinvestment, Refutes Media Speculation – MSN
The Indian government’s plans to disinvest in IDBI Bank have been making headlines, with several banks and financial institutions being speculated as potential bidders. However, Kotak Mahindra Bank has come out to refute media reports suggesting its participation in the bidding process. In a statement, the bank clarified that it is not participating in the disinvestment process of IDBI Bank.
The government had announced its plans to sell a majority stake in IDBI Bank, which is currently owned by the state-owned Life Insurance Corporation of India (LIC) and the government. The move is part of the government’s broader strategy to consolidate and privatize state-owned banks. The disinvestment process is expected to attract significant interest from private sector banks and financial institutions, both domestic and international.
IDBI Bank is one of the largest public sector banks in India, with a network of over 1,800 branches and a significant presence in the corporate and retail banking segments. The bank has been struggling with high levels of non-performing assets (NPAs) and has been under pressure to improve its financial performance. The government’s decision to disinvest in the bank is seen as a move to bring in fresh capital and expertise to turn around the bank’s fortunes.
Kotak Mahindra Bank’s denial of participation in the bidding process has come as a surprise, given its reputation as one of the most aggressive and expansion-minded private sector banks in India. The bank has been actively looking to expand its presence in the Indian banking sector, and IDBI Bank’s disinvestment was seen as a potential opportunity for it to acquire a large and established bank.
Despite Kotak Mahindra Bank’s withdrawal, the disinvestment process is expected to attract significant interest from other bidders. Several other private sector banks, including Axis Bank, ICICI Bank, and HDFC Bank, are reportedly considering bidding for IDBI Bank. The government is expected to soon announce the names of the shortlisted bidders, and the disinvestment process is expected to be completed by the end of the fiscal year. The sale of IDBI Bank is expected to be a major milestone in the government’s efforts to consolidate and privatize the Indian banking sector.
HDFC Bank and ICICI Bank Ordered by RBI to Set Aside Extra Funds to Address Priority Sector Lending Shortfalls
The Reserve Bank of India (RBI) has directed HDFC Bank and ICICI Bank to make additional provisions in their financial statements to address priority sector lending (PSL) compliance issues. This move is aimed at ensuring that the banks meet the regulatory requirements for lending to priority sectors, such as agriculture, small-scale industries, and export-oriented businesses.
As per the RBI guidelines, banks are required to allocate a certain percentage of their net bank credit to priority sectors. However, HDFC Bank and ICICI Bank were found to have failed to meet these requirements, leading to the RBI’s directive. The banks will now have to make additional provisions to compensate for the shortfall in their PSL lending.
The RBI has been emphasizing the importance of PSL in recent years, as it helps to promote financial inclusion and support economic growth. The regulator has set targets for banks to lend to priority sectors, and banks that fail to meet these targets are required to make additional provisions.
The directive to HDFC Bank and ICICI Bank is expected to have a significant impact on their financial performance. The banks will have to set aside additional funds to meet the PSL requirements, which could affect their profitability. However, the move is seen as a positive step towards promoting financial inclusion and supporting the growth of priority sectors.
The RBI’s action is also expected to have a broader impact on the banking sector. Other banks that have failed to meet PSL requirements may also face similar directives, which could lead to a more level playing field in the industry. The move is also expected to promote greater transparency and accountability in the banking sector, as banks will be required to disclose their PSL lending performance in their financial statements.
In recent years, the RBI has taken several steps to promote PSL, including the introduction of new guidelines and the imposition of penalties on banks that fail to meet the requirements. The regulator has also encouraged banks to lend to priority sectors through various incentives, such as lower risk weights and higher returns on investments.
Overall, the RBI’s directive to HDFC Bank and ICICI Bank is a significant step towards promoting financial inclusion and supporting the growth of priority sectors. The move is expected to have a positive impact on the banking sector and the economy as a whole, as it will help to promote greater transparency and accountability in lending practices.
Small Finance Banks Poised for 24% Surge: The Future Challengers to HDFC Bank’s Throne?
The small finance bank (SFB) sector in India is experiencing significant growth, with loan books expanding at a compound annual growth rate (CAGR) of 20-25%. This growth is driven by lending to small businesses, housing, and vehicles, as well as an increase in deposit mobilization. The sector is expected to reach total advances of over ₹2 trillion by fiscal year 2026. The Reserve Bank of India’s (RBI) new roadmap for SFB-to-Universal Bank transitions is also supporting the sector’s growth.
Several SFBs have reported strong performance in the second quarter of FY26. AU Small Finance Bank reported a 17% year-on-year loan book expansion, with deposits growing 21% and a net profit of ₹561 crore. Ujjivan Small Finance Bank saw its loan book grow 14% year-on-year, with deposits rising 15.1% and a net profit of ₹122 crore. Capital Small Finance Bank posted loan book growth of around 18% year-on-year, with deposits increasing 20% and a net profit of ₹35 crore. Suryoday Small Finance Bank experienced strong business growth, with deposits up 35.5% and the loan book expanding 18.9%, but its asset quality weakened and net profit declined.
The valuations of these SFBs vary significantly, with AU Small Finance Bank trading at approximately four times book value and Ujjivan SFB trading at 1.9 times book. Capital SFB and Suryoday SFB trade below book value, indicating subdued valuations due to higher risks or uneven performance. Investors must carefully select SFBs based on consistent growth, controlled risks, and improving profitability.
The SFB sector’s growth is driven by several factors, including the increasing demand for financial services from small businesses and individuals, and the government’s initiatives to promote financial inclusion. The sector’s expansion is also driven by the RBI’s efforts to strengthen the banking system and promote the growth of SFBs. However, the sector also faces challenges, such as intense competition, regulatory risks, and the need to maintain asset quality.
Overall, the SFB sector in India is experiencing significant growth and is expected to continue to play an important role in promoting financial inclusion and supporting the country’s economic growth. Investors must carefully evaluate the performance and valuations of individual SFBs to make informed investment decisions. With the sector’s growth expected to continue, SFBs are evolving from niche micro-lenders into systemic players, and their transition to universal banks is likely to have a significant impact on the Indian banking landscape.
Upcoming Q3 earnings: Kotak Bank, BHEL, IndiGo, and Hind Zinc set to announce results next week – here are the key dates
The week starting January 19 is expected to be a busy one for corporate earnings, with several major companies across various sectors announcing their financial results for the quarter ended December 31, 2025. On Monday, January 19, Punjab National Bank (PNB), IRFC, LTIMindtree, Bharat Heavy Electricals (BHEL), Hindustan Zinc, and Havells India are among the companies that will report their earnings. Tata Capital and Oberoi Realty will also announce their numbers on the same day.
On Tuesday, January 20, United Spirits, SRF, AU Small Finance Bank, Persistent Systems, Gujarat Gas, IndiaMart InterMesh, and CreditAccess Grameen are scheduled to report their earnings. Wednesday, January 21, will see results from Dr Reddy’s Laboratories, Tata Communications, Dalmia Bharat, Hindustan Petroleum (HPCL), Bank of India, UTI Asset Management, and Canara HSBC Life Insurance.
Thursday, January 22, will feature results from InterGlobe Aviation (IndiGo), DLF, Bandhan Bank, CAMS, Coforge, and Home First Finance. On Friday, January 23, JSW Steel, Bharat Petroleum (BPCL), IndusInd Bank, Cipla, Adani Green Energy, Urban Company, and Piramal Finance will announce their numbers. The week will conclude with Kotak Mahindra Bank and UltraTech Cement reporting their earnings on Saturday, January 24.
Some of the key companies to watch out for during the week include Reliance Industries, HDFC Bank, and ICICI Bank, which have already announced or are set to announce their earnings. The banking sector will be in focus, with several public and private sector banks reporting their numbers. The IT sector will also be closely watched, with companies like LTIMindtree and Persistent Systems announcing their earnings. Overall, the week is expected to provide valuable insights into the performance of various sectors and companies, and will be closely watched by investors and analysts.
Sanjay Agarwal: AU Bank achieved a tenfold growth, defying challenges from the COVID pandemic, interest rate fluctuations, and the NBFC crisis.
Sanjay Agarwal, MD and CEO of AU Small Finance Bank, reflected on the bank’s remarkable growth over the past nine years, during which its balance sheet has expanded tenfold. Despite navigating challenges such as the COVID-19 pandemic, high interest rates, and non-banking financial company (NBFC) crises, the bank has demonstrated resilience and adaptability. Agarwal attributed this success to the bank’s initial focus on high net-worth clients and its strategic partnership with HDFC Bank, which helped shape its approach to risk management, distribution, and franchise building.
Investor Raamdeo Agrawal praised AU Bank for its professional management and prudent decision to avoid unsecured lending in its early years, which enabled the bank to manage risk and achieve steady growth. Sanjay Agarwal highlighted the crucial role of technology in the bank’s growth, citing AI-led communication and operational tools that have enabled the bank to reach deeper markets and serve customers more efficiently. This has allowed AU Bank to scale faster than traditional banking models.
Agarwal emphasized the importance of building a strong leadership team that can run the institution independently, ensuring continuity beyond individual promoters. He credited mentorship from Raamdeo Agrawal, who encouraged him to think bigger, strengthen governance, and prioritize patience in building a lasting institution. Looking ahead, Sanjay Agarwal expressed confidence that AU Bank can grow into a much larger institution over the next two decades, driven by disciplined capital management, strong teams, and technology. The bank’s focus will be on longevity rather than short-term expansion, with a commitment to sustainable growth and long-term success. Overall, AU Bank’s story serves as a testament to the power of strategic leadership, prudent risk management, and innovative technology in driving growth and success in the banking sector.
Stock Market Updates of ESAF Bank
Recent Updates
After a 5-year decline, state-run banks see a surge in employee numbers, while private banks experience a 0.9% workforce reduction
The Indian banking sector has seen a shift in employee counts, with public sector banks adding 13,179 employees to reach 9,70,437 in FY25, while private banks saw a 0.86% drop to 8,38,150 employees. State-run banks, which had earlier focused on consolidation and improving balance sheets, have now started to expand their headcount. The largest public sector bank, State Bank of India (SBI), added 3,930 employees to reach 2,36,226 in FY25. SBI plans to hire 18,000 more employees in FY26, including 13,500 clerical posts and 3,000 probationary officers.
The government’s consolidation efforts, which began in 2017 with the merger of five associate banks with SBI, have continued with the merger of 12 banks into four larger entities in 2020. There are talks of a third wave of mergers to reduce the total number of banks to four core anchors. Recently, SBI hired over 1,000 probationary officers and plans to continue hiring.
Among other public sector banks, Punjab National Bank added 397 employees to reach 1,02,746, while Central Bank of India saw a marginal uptick in employee count to 33,081. However, Bank of Baroda and Canara Bank saw a decline in employee count. In the private sector, ICICI Bank saw a significant decline of 7.13% in employee count to 1,30,957, while HDFC Bank added 994 employees to reach 2,14,521. Axis Bank added 121 employees to reach 1,04,453.
The overall headcount in the banking system rose to 18,08,587 from 17,87,566 in FY24. Foreign banks’ employee count stood at 28,041, while small finance banks had 1,77,797 employees, with AU Bank being the largest employer with 50,946. The payments banks had 6,958 employees. The banking sector’s employee count is expected to continue to evolve with the ongoing consolidation and technological advancements.
Top FD Options for Seniors: Earn Up to 8% Interest Annually with These High-Yielding Fixed Deposits – View Complete List on Goodreturns
Best Fixed Deposits for Senior Citizens: Earn Up to 8% Annual Return
As a senior citizen, it’s essential to invest in a secure and stable financial instrument that provides a regular income stream. Fixed Deposits (FDs) are an excellent option, offering a fixed return on investment with minimal risk. Here’s a list of the best FDs for senior citizens, providing up to 8% annual return.
Top Banks Offering High-Return FDs for Senior Citizens
Several banks in India offer attractive interest rates on FDs for senior citizens. Some of the top banks include:
- Yes Bank: Offers 7.50% interest rate for 3-4 year tenure and 7.25% for 2-3 year tenure.
- IndusInd Bank: Provides 7.40% interest rate for 3-4 year tenure and 7.20% for 2-3 year tenure.
- Kotak Mahindra Bank: Offers 7.30% interest rate for 3-4 year tenure and 7.10% for 2-3 year tenure.
- HDFC Bank: Provides 7.25% interest rate for 3-4 year tenure and 7.00% for 2-3 year tenure.
- ICICI Bank: Offers 7.20% interest rate for 3-4 year tenure and 6.95% for 2-3 year tenure.
Other Banks Offering Attractive FD Rates
In addition to the above-mentioned banks, other financial institutions also offer competitive interest rates on FDs for senior citizens. These include:
- Bajaj Finance: Offers 8.00% interest rate for 3-4 year tenure.
- Mahindra Finance: Provides 7.80% interest rate for 3-4 year tenure.
- SBI: Offers 7.10% interest rate for 3-4 year tenure.
- Axis Bank: Provides 7.05% interest rate for 3-4 year tenure.
Key Benefits of FDs for Senior Citizens
Fixed Deposits offer several benefits for senior citizens, including:
- Guaranteed Returns: FDs provide a fixed return on investment, ensuring a regular income stream.
- Low Risk: FDs are a low-risk investment option, making them ideal for senior citizens.
- Flexibility: FDs offer flexible tenure options, allowing senior citizens to choose the investment period that suits their needs.
- Tax Benefits: Interest earned on FDs is taxable, but senior citizens can claim a deduction of up to Rs. 50,000 under Section 80TTB.
In conclusion, senior citizens can earn up to 8% annual return on their investments by opting for the best FDs offered by various banks and financial institutions. It’s essential to compare the interest rates and tenure options before making an investment decision.
PSB Xchange announces key leadership appointments, naming Ankush Aggarwal as Chief Experience Officer (CXO) and Sahil Sikka as Chief Business Officer (CBO) and Chief Financial Officer (CFO).
PSB Xchange, a digital marketplace for financial solutions, has announced the appointment of two new leaders to its team. Ankush Aggarwal has been appointed as Chief Experience Officer, bringing over 20 years of experience in corporate banking and SME segments. He specializes in building client servicing frameworks, driving digital transformation, and enabling process automation, with a focus on experience-led growth. Aggarwal has previously worked at Kotak Mahindra Bank, IndusInd Bank, and SG Finserve, where he led cross-functional initiatives and aligned technology, operations, and business strategy to deliver scalable and compliant experience models.
Alongside Aggarwal, Sahil Sikka has been appointed as Chief Business Officer and Chief Financial Officer. Sikka brings over 15 years of experience in banking and financial services, with a background in building, scaling, and transforming businesses. He was part of the founding leadership team at SG Finserve, where he played a key role in building a listed NBFC from the ground up. Sikka has also worked with HDFC Bank, Aditya Birla Finance, and Kotak Mahindra Bank, driving growth across corporate banking and structured finance.
In their new roles, Aggarwal will focus on building intuitive and seamless experiences for banks, corporates, and ecosystem partners, while Sikka will focus on strengthening PSB Xchange’s growth strategy, scaling the business sustainably, and driving long-term value creation. The appointments are expected to significantly strengthen the leadership bench at PSB Xchange, with CEO Sorabh Dhawan stating that the new leaders will play a pivotal role in driving sustainable growth and long-term value for stakeholders.
The appointments come as PSB Xchange continues to scale and deepen its engagement with banks and financial institutions. The platform aims to provide a digital marketplace for financial solutions, and the new leaders are expected to bring expertise and experience to help drive this vision forward. With Aggarwal’s focus on experience-led growth and Sikka’s expertise in scaling businesses, PSB Xchange is well-positioned to achieve its goals and create long-term value for its stakeholders. Overall, the appointments are a significant development for PSB Xchange, and are expected to have a positive impact on the company’s growth and success.
Among the prominent banks are SBI, HDFC Bank, Axis Bank, ICICI Bank, Kotak Mahindra, and Bank of Baroda.
Several major Indian banks have announced changes to their fixed deposit (FD) interest rates, affecting customers who invest in these instruments. The changes vary by bank and tenure, but overall, they offer returns ranging from 5.9% to 6.95% for different terms.
State Bank of India (SBI), the country’s largest lender, has been offering 6.25% returns on FDs with a tenure of one year to less than two years, and 6.40% for two to less than three years. Senior citizens receive higher returns, with 6.75% on one-year to two-year FDs and 6.90% on two-year to less than three-year FDs. These changes took effect on December 15.
HDFC Bank, another major player, introduced new interest rates on December 17. The bank offers 6.25% for one-year tenures, 6.35% for 15 months to less than 18 months, and 6.45% for two years. Senior citizens are eligible for 6.75% on one-year tenures and 6.95% on two-year tenures.
Axis Bank also revised its FD interest rates, effective December 26. The bank now offers 6.25% for one-year tenures and 6.45% for two years. Senior citizens can earn 6.75% on one-year FDs and 6.95% on two-year FDs.
Canara Bank has also revised its interest rates, with a new rate of 5.9% for FDs with a maturity period of one year to 15 months. Senior citizens, however, can earn 6.40% for the same period.
These changes reflect the ongoing evolution of the Indian banking sector, with lenders adjusting their interest rates to stay competitive and respond to market conditions. Customers can take advantage of these revised rates to maximize their returns on fixed deposits, depending on their individual investment goals and preferences. It is essential for investors to review the updated interest rates and terms offered by each bank to make informed decisions about their investments.
Senior citizens can earn up to 8% interest rate for a 3-year investment; check the complete list of participating banks.
For senior citizens investing for a period of three years, several banks are offering a fixed deposit (FD) rate of up to 8%. This is a significant incentive for seniors who are looking to grow their savings while minimizing risk.
The banks offering these high FD rates for senior citizens include major players in the banking industry. Some of the top banks offering up to 8% FD rates for seniors investing for three years are:
1. Bank of Baroda: Offering 7.75% to 7.95% interest rates for senior citizens, depending on the deposit amount and tenure.
2. Canara Bank: Providing 7.75% to 7.9% interest rates for senior citizens, with varying rates based on deposit amount and tenure.
3. Indian Bank: Offering 7.75% interest rate for senior citizens, with higher rates applicable for larger deposits.
4. Punjab National Bank: Giving 7.75% to 7.9% interest rates for senior citizens, depending on the deposit amount and tenure.
5. State Bank of India (SBI): Offering 7.6% to 7.8% interest rates for senior citizens, with varying rates based on deposit amount and tenure.
6. ICICI Bank: Providing 7.75% to 7.9% interest rates for senior citizens, with higher rates applicable for larger deposits and longer tenures.
7. HDFC Bank: Offering 7.75% to 7.9% interest rates for senior citizens, with varying rates based on deposit amount and tenure.
These high FD rates can help senior citizens earn substantial interest on their deposits, ensuring a steady income stream during their retirement years. It’s essential to note that the interest rates may vary depending on the bank, deposit amount, and tenure chosen.
Before investing, senior citizens should carefully review the terms and conditions of the FD, including any penalties for early withdrawal and the minimum deposit requirements. They should also consider their individual financial goals, risk tolerance, and liquidity needs before making a decision.
It’s worth mentioning that senior citizens can also explore other investment options, such as senior citizen savings schemes, provident funds, and pension plans, which may offer higher returns and additional benefits. However, FDs remain a popular choice for seniors due to their low-risk nature and fixed returns.
In conclusion, the high FD rates offered by banks for senior citizens can be an attractive option for those looking to grow their savings over a three-year period. Seniors should carefully evaluate the various options available, considering their individual financial needs and goals, before making an informed investment decision.
Ganesh Sankaran takes the helm as Head of Wholesale Banking Group at IndusInd Bank
IndusInd Bank has appointed Ganesh Sankaran as the Head of its Wholesale Banking Group. Sankaran is a seasoned banking professional with over three decades of experience in various areas, including wholesale, retail credit, and SME. He will be responsible for developing the bank’s strategy and business in key areas such as corporate banking, institutional banking, gems and jewelry, SME and mid-market group, new age economy, real estate, corporate agri-business, supply chain finance, transaction banking, and project and structured finance.
Throughout his career, Sankaran has held senior leadership positions at leading private sector banks, where he has played a crucial role in building businesses, driving large-scale transformations, and delivering consistent performance. His expertise spans relationship management, credit and risk, product expertise, and board-level exposure. Prior to joining IndusInd Bank, Sankaran worked at Axis Bank, Federal Bank, and HDFC Bank, where he gained valuable experience and built a strong reputation in the industry.
In addition to his banking experience, Sankaran has also served on the boards of several companies, including Axis Capital, Equirus Capital, and Fedbank Financial Services. He also held the position of Executive Director and Board Member at Federal Bank. With his extensive experience and expertise, Sankaran is well-equipped to lead IndusInd Bank’s Wholesale Banking Group and drive growth and expansion in the bank’s business.
The appointment of Sankaran is expected to bring new insights and perspectives to IndusInd Bank’s Wholesale Banking Group, and his experience in building and transforming businesses will be invaluable in driving the bank’s strategy and growth. As the bank continues to expand its operations and services, Sankaran’s leadership and expertise will be crucial in navigating the complex and competitive banking landscape. With his strong track record and expertise, Sankaran is poised to make a significant impact at IndusInd Bank and contribute to the bank’s continued success and growth.
Fixed Deposit rates soar up to 8.05% for general public with 5-year investment term; Check out the complete list of banks
Fixed Deposit (FD) Rates Up to 8.05% for General Citizens Investing for Five Years
In a move to encourage savings and investments, several banks in the country have increased their fixed deposit (FD) interest rates. For general citizens investing for a period of five years, the interest rates can go up to 8.05%. This is a significant increase, making FDs an attractive option for those looking to grow their savings.
List of Banks Offering High FD Rates
Here is a list of banks offering high FD rates for a five-year investment period:
- DCB Bank: 8.05% interest rate for a five-year FD
- Yes Bank: 7.75% interest rate for a five-year FD
- IndusInd Bank: 7.75% interest rate for a five-year FD
- Kotak Mahindra Bank: 7.70% interest rate for a five-year FD
- Axis Bank: 7.60% interest rate for a five-year FD
- HDFC Bank: 7.55% interest rate for a five-year FD
- ICICI Bank: 7.50% interest rate for a five-year FD
- State Bank of India (SBI): 7.40% interest rate for a five-year FD
- Bank of Baroda: 7.35% interest rate for a five-year FD
- Punjab National Bank (PNB): 7.30% interest rate for a five-year FD
Benefits of Investing in FDs
Investing in FDs offers several benefits, including:
- Guaranteed returns: FDs offer a fixed interest rate, ensuring that your investment grows at a guaranteed rate.
- Low risk: FDs are a low-risk investment option, making them suitable for conservative investors.
- Liquidity: FDs can be easily liquidated, allowing you to access your funds when needed.
- Tax benefits: Interest earned on FDs is taxable, but you can claim a tax deduction on the interest income.
How to Invest in FDs
To invest in an FD, you can visit the website of the bank or visit a branch in person. You can also invest through mobile banking or online banking platforms. The minimum deposit amount and investment period may vary depending on the bank and the type of FD.
Overall, investing in FDs can be a great way to grow your savings and earn a fixed income. With interest rates up to 8.05% for a five-year investment period, now is a good time to consider investing in an FD.
Banks are placing early wagers, indicating a corporate credit resurgence may be imminent.
The Indian banking sector is witnessing a resurgence in corporate credit growth, driven primarily by working capital financing and project-linked funding. According to senior bankers, the uptick is modest, but it marks a turn for lenders such as HDFC Bank and Axis Bank, which had earlier slowed their wholesale book due to competitive loan pricing. HDFC Bank’s corporate and other wholesale loan book grew 6.4% year on year and 4.7% on quarter, while Axis Bank’s corporate loan book expanded 20% on year and 11% on quarter.
The pickup in corporate credit comes as yields on government securities have risen, making bank loans more attractive for corporates, especially low-rated ones. The weighted average lending rate on fresh rupee loans of scheduled commercial banks was at 8.75% in August, down from 8.81% a month earlier, making it cheaper for corporates to borrow. Bankers agree that while capex-led demand remains modest, working capital financing and project-linked funding are driving incremental growth.
Public sector banks, such as Punjab National Bank and Bank of India, have also joined the lending rebound, buoyed by a healthy project pipeline and improved corporate balance sheets. Punjab National Bank has total loan sanctions worth ₹1.78 trillion, which are awaiting phased disbursements, while Bank of India reported double-digit growth of nearly 12% on year in its corporate book in Q2.
However, pricing remains a challenge, with corporates seeking loans at unrealistically low rates. Indian Overseas Bank chief executive Ajay Kumar Srivastava said that the issue is not demand, but pricing, as corporates seek loans at around 6%, which is not viable for the bank given its own funding costs. Despite this, the bank has a ₹15,000 crore sanctioned pipeline and expects 12-13% on year growth in its corporate loan book this year, led by manufacturing and PLI-linked sectors.
Overall, the sector-wide uptick in corporate credit growth is expected to strengthen in the coming quarters as sanctioned loans move to disbursement stage and investment activity gradually picks up. Ratings agency Icra has not revised its credit growth estimates for FY26 yet, but expects the cuts in goods and services tax rates to support credit expansion for banks and NBFCs in the near term.
Ten major banks are set to unveil their Q2 financial reports this Saturday, October 18, offering a glimpse into their performance.
On October 18, 10 banks in India, including both private and public sector lenders, are set to announce their September quarter earnings. The list of banks includes HDFC Bank, ICICI Bank, YES Bank, Punjab National Bank, IDFC First Bank, IndusInd Bank, IDBI Bank, The Federal Bank, RBL Bank, and J&K Bank. Other notable companies that will announce their Q2 earnings are UltraTech Cement, UTI AMC, SML Isuzu, and Can Fin Homes.
Analysts expect the Q2 earnings for India Inc. to rebound after a muted Q1, supported by a mix of cyclical and structural factors. The financial sector is expected to be a key driver of overall earnings growth. Banks and non-banking financial companies (NBFCs) are benefiting from steady credit demand across retail, agriculture, and MSME segments, while asset quality has remained stable. Despite slight pressure on net interest margins, profitability is being supported by healthy loan growth, controlled slippages, and recoveries from past stressed accounts.
In terms of asset quality, analysts expect a comfortable outcome for large banks, with private banks appearing to be more comfortable lending aggressively in unsecured segments such as credit card and personal loans. Mid-size banks are expected to see improvement in microfinance asset quality, although credit costs will remain elevated. The focus will be on forward flows in early delinquency buckets and X bucket collection efficiency.
Regarding margins, most analysts believe that margins have bottomed out in Q2FY26, but the decline will be limited for mid-size banks. Public sector banks are expected to witness relatively lower QoQ margin decline, while large private banks are expected to see a sharper decline. The net interest margin (NIM) for Axis Bank, which has already announced its Q2 earnings, came in at 3.73% for the quarter. The bank reported a 26% decline in standalone net profit to ₹5,089.64 crore annually for the quarter ended September 2025.
Overall, the Q2 earnings announcements are expected to be closely watched by investors, with a focus on asset quality, margins, and profitability. The financial sector is expected to be a key driver of overall earnings growth, and the performance of the banks will be closely monitored.