IDFC First Bank jumps 10%, AU SFB, other banking stocks rally too on upbeat Q1 earnings; NIFTY BANK up 1%

Banking stocks traded with notable gains on Monday, July 27, as positive global cues helped Indian equities rebound after a five-session losing streak.

Investor sentiment was further buoyed by a largely encouraging set of June-quarter earnings from financial companies, with lenders such as IDFC First Bank and AU Small Finance Bank leading the gains.

The NIFTY BANK index jumped as much as 1.12% to 57,330.05 levels, with 12 out of 14 constituents in the green.

The top gainer on the list was IDFC First Bank - up nearly 10% to hit its 52-week high of ₹88.76. AU Small Finance Bank shares jumped 4.7% to ₹1,051.60 apiece on the NSE. Punjab National Bank shares traded 1.59% higher at ₹112.14 apiece on the NSE, and State Bank of India (SBI) traded 0.7% higher at ₹1,021.80 on the NSE.

HDFC Bank was up 0.26% at ₹744.70.

IDFC First Bank

IDFC First Bank on Saturday reported its highest-ever quarterly profit after tax (PAT) of ₹1,075 crore in the April-June period of the current fiscal year (Q1 FY27), up 132.4% from ₹463 crore in the year-ago period.

Total customer business increased to ₹6,04,776 crore as of June 30, 2026 from ₹5,10,031 crore as of June 30, 2025, a growth of 18.6%, the bank said in a stock exchange filing.

The bank further said its loans and advances increased to ₹3,05,370 crore as of June 30, 2026, from ₹2,53,233 crore as of June 30, 2025, a growth of 20.6%.

Gross NPA of the bank improved to 1.51% as of June 30, 2026 from 1.97% as of June 30, 2025. Net NPA, too, improved to 0.44% from 0.55% as of June 30, 2025.

Net interest margin (NIM) of the bank improved to 5.96% during the quarter under review as against 5.71% in the year-ago period.

IDFC First Bank further said it has created a contingency provision of ₹515 crore on a prudent basis for macro-geopolitical uncertainties.

AU Small Finance Bank (SFB)

AU Small Finance Bank (SFB) on Saturday reported a 37% jump in June quarter (Q1 FY27) profit at ₹796 crore, helped by a lowering in provisions and expansion in the net interest margin (NIM).

The lender, which is on its way to transition to a universal bank, had reported a net profit of ₹581 crore in the year-ago period and ₹832 crore in the quarter-ago period.

Its Executive Director Vivek Tripathi said this is one of the best first quarters in the last many years, and the lender has achieved over 20% of the budgeted business instead of the usual 15% in the first three months of the fiscal year, which are generally presumed to be seasonally soft for the banking system.

"There was robust demand despite the headwinds like geopolitics, and the same is seen through our business and also high frequency indicators like growth in GST, e-way bills etc," Tripathi said.

For the reporting quarter, core net interest income grew 32% to ₹2,695 crore in the reporting quarter on the back of a 23% loan growth and a 0.47% expansion in the NIM to 5.9%.