Private banks' deposits grew 13.8% in June, outpacing PSBs at 10.3%, while bank credit surged 16.5%, widening the gap with deposit growth
Analysts at Jefferies believe that uncertainty can drag EPS & valuations, but after a 27% fall year-to-date at 1.5x PB, the risk-reward for HDFC Bank stock seems balanced.
Differences between boards and management over priorities and strategy are prompting some private bank CEOs to opt out, raising concerns over leadership continuity
Over the medium term (6-24 months), PL Capital said that it prefers large private banks, capital goods, and consumer durables.
On a year-to-date (YTD) basis, HDFC Bank has declined 28 per cent and remains 8 per cent lower than in the last five years.
Kotak Mahindra Bank and Axis Bank led Wednesday's gains, while the PSU Bank index retained its longer-term lead, rising 26.6 per cent over one year against 5.3 per cent for private banks
Banks are raising interest rates, using website countdown timers, fast-tracking deposit commitments and tapping overseas bond markets as the RBI deadline approaches
ICICI Bank, Axis Bank and Kotak Mahindra Bank reported lower attrition in FY26, while HDFC Bank saw a marginal rise as technology and digitisation reduced headcount
Leading private lenders expect lending momentum to continue after strong June-quarter growth, with companies increasingly opting for bank loans over costlier bond market borrowings
RBI's measures to attract foreign currency inflows are expected to improve liquidity and support lending margins as major private sector banks, including HDFC and Axis Bank, report Q1 earnings
Q1-FY27 numbers, according to Anirudh Garg, fund manager & partner, INVasset PMS, are likely to show soft margins across the board, but private banks will be the first to show the NIM trough is over
There are two key issues behind this phenomenon. The RBI and the government can solve this in a jiffy
Public sector lenders Union Bank of India, Central Bank of India and Canara Bank posted double-digit growth in advances in April-June of FY27
Instead of borrowing to the hilt, maintain a buffer to avoid margin calls during spells of market volatility
Axis Bank plans to strengthen its national footprint through 500 new branches, focusing on rural expansion, digital banking, and key customer segments
The five-year mandate covers 6,000 ATMs and includes currency logistics, ATM modernisation and deployment of CMS's AI-powered HAWKAI platform
Corporate and MSME loans power credit growth as retail lending lags, but banks expect a pickup in FY27
RBI Bulletin shows stronger pass-through of rate cuts to lending rates by private banks than PSBs, though overall transmission across sectors remains robust
Global brokerage Nomura prefers private banks over PSU bank stocks, citing limited re-rating scope, weaker earnings quality, and high leverage risks among PSBs. It likes Axis Bank & ICICI Bank
Advances at select mid- and small-sized private banks grew faster than deposits in FY26, reflecting tighter funding conditions across the sector