NIFTY Bank slides over 1.5%; HDFC Bank, Axis Bank tumble 5% after Q1 earnings

Banking stocks remained in focus on Monday, July 20, after a slew of lenders reported their June quarter (Q1 FY27) earnings over the weekend and after market hours on Friday.

The NIFTY Bank index fell more than 1.5% in early trade, led by sharp declines in heavyweight lenders HDFC Bank and Axis Bank, with both stocks tumbling over 4% after their quarterly results.

When last seen, HDFC Bank shares traded 5% lower at ₹778.75 apiece on the NSE, while Axis Bank stood at ₹1,261.90, down 5%.

On the other hand, ICICI Bank was trading in the green - up 0.62%.

Among other constituents, PNB was trading over 5% higher at ₹111.24 on the NSE, while Kotak Mahindra Bank was also down 3% at ₹378.

HDFC Bank

HDFC Bank on Saturday reported a 5% increase in standalone profit to ₹19,060 crore for the June quarter (Q1 FY27).

The country's biggest private sector lender had earned a net profit of ₹18,155 crore in the year-ago period.

However, the total income of the bank during the quarter under review dropped to ₹92,184 crore from ₹99,200 crore logged in the same period a year ago, HDFC Bank said in a regulatory filing.

The lender's interest income increased to ₹79,363 crore from ₹77,470 crore in the same quarter a year ago.

Welcoming new chairman Rajiv Kumar, HDFC Bank MD and CEO Sashidhar Jagdishan said the appointment has brought in a sense of stability.

Kumar, former Chief Election Commissioner and Finance Secretary, was appointed part-time chairman of the bank following the sudden resignation of Atanu Chakraborty effective March 18.

In his resignation letter, Chakraborty had said that "certain happenings and practices within the bank are not in congruence with my personal values and ethics".

This led to a sharp fall in share prices of the bank, and concerns were raised about its corporate governance.

Kumar had been instrumental in revitalising public sector banking and the financial sector as Secretary, Department of Financial Services between 2017 and 2020.

Within a fortnight of Kumar joining the Department of Financial Services, accounts of about 3.38 lakh shell companies were frozen, hitting at the architecture of black money itself. Curbs on Ponzi schemes followed.

During the period, operating profit of the bank declined to ₹28,169 crore, as compared to ₹35,734 crore in the same quarter a year ago.

Axis Bank

Axis Bank on Saturday reported a 22.23% jump in consolidated profit for the June quarter at ₹7,632.31 crore, helped by a narrowing in provisions.

On a standalone basis, the third-largest private sector lender's net profit jumped 23% to $7,114 crore.

Its core net interest income (NII) grew 8% to ₹14,646 crore on the back of a 19% jump in advances and a narrowing in the net interest margin to 3.46% from 3.80% in the year-ago period and the quarter-ago period's 3.73%.

A 38% growth in corporate loans led the advances growth, while retail loans grew 8% during the April-June period, the bank said.

Its Chief Executive and Managing Director Amitabh Chaudhry said the NIM is at the bottom in the current cycle, hinting that it will rise from here on but refrained from giving any aspirational number for the near future.

He said the FCNR(B) scheme, under which the banks are expected to get deposits from the diaspora, will also influence the NIM number going forward as it will bring additional liquidity that was not budgeted for, and can help with a paydown of high-cost liabilities.

PNB

Punjab National Bank (PNB) reported an over three-fold jump in standalone net profit at ₹5,253 crore for the quarter ended June 30, 2026.

The state-owned bank had posted a net profit of ₹1,675 crore in the year-ago period.

Total income in the quarter under review remained static at ₹37,231 crore, PNB said in a regulatory filing.

However, the lender's interest income increased marginally to ₹32,897 crore, from ₹31,964 crore in the same quarter a year ago.

During the period, the bank's operating profit rose to ₹7,519 crore, as compared to ₹7,081 crore in the same quarter a year ago.

The bank's asset quality improved as gross non-performing assets (NPAs) declined to 2.78% of gross advances at the end of the June quarter, from 3.78% a year ago.