Investors advised caution, shouldn't be gung-ho about banks' Q1 updates

Moratorium extension and business flow from March may have influenced figures

The June quarter (Q1) updates of three private banks — HDFC Bank, IndusInd Bank, and Federal Bank — announced in the last few days enthused investors on Monday. With 2-3 per cent gains in stock prices, HDFC Bank and IndusInd Bank were among the top gainers on the Nifty Bank Index, which was up 1.6 per cent on Monday, while Federal Bank was up 1.4 per cent.

HDFC Bank continued its strong momentum with 21-25 per cent year-on-year growth in loans and deposits. However, while IndusInd Bank and Federal Bank’s deposits also grew, their loan growth fell further in the first