The Nifty Bank index rose to 58,376, gaining nearly 1%. The index snapped a two-session losing streak today.
HDFC Bank Q1 business update
HDFC Bank shares were the top gainers on the index, jumping nearly 3% after India’s largest private lender reported gross advances at Rs 30.61 lakh crore at the end of the April-June quarter of FY27, marking a 15.4% year-on-year (YoY) rise from Rs 26.53 lakh crore reported in the corresponding quarter of the previous financial year.
Its period end deposits meanwhile rose 14.7% YoY to Rs 31.71 lakh crore at the end of the first quarter of FY27, as against Rs 27.64 lakh crore reported at the end of the corresponding quarter of FY26.
JM Financial noted that HDFC Bank reported healthy deposit mobilisation. “HDFC Bank reported robust loan growth, marginally ahead of estimates, while deposit growth was in line. Consequently, the CD ratio inched up to 95.8% (vs. 94.6% in Q4 FY26). We expect margins to contract slightly this quarter and, in our recent preview note, estimated a 2bp QoQ margin contraction,” said Motilal Oswal in its note.
Also read: HDFC Bank Q1 business update | Gross advances rise 15% to Rs 30.61 lakh crore
AU Small Finance Bank and IndusInd Bank shares gained nearly 2% each. AU Small Finance Bank’s gross loan portfolio rose around 23% YoY to Rs 1.44 lakh crore, while total deposits gained nearly 24% to Rs 1.58 lakh crore. IndusInd Bank’s net advances however declined over 2% YoY to Rs 3.26 lakh crore, but deposits rose 4.5% YoY to Rs 4.15 lakh crore.ICICI Bank, Axis Bank, Federal Bank, State Bank of India and Yes Bank shares gained up to 1%, as seen at 11 am.Also read: Yes Bank shares gain after Q1 advances rise 18% to Rs 2.85 lakh crore, deposits up 14%
Kotak Mahindra Bank Q1 business update
Bucking the trend, Kotak Mahindra Bank shares crashed 4%, significantly weighing on the Nifty Bank index. This came after the private lender announced that its net advances for the quarter which ended on June 30, 2026, rose more than 15% year-on-year (YoY) to Rs 5.12 lakh crore, from Rs 4.45 lakh crore reported in the same period last year. Deposits meanwhile grew nearly 12% YoY to Rs 5.73 lakh crore during Q1 FY27, from Rs 5.13 lakh crore in Q1 FY26. Sequentially however, the growth in deposits was marginal at 0.1% QoQ from Rs 5.72 lakh crore in Q4 FY26.
Motilal Oswal noted that Kotak Mahindra Bank’s Q1 loan growth remained largely in line with its estimate. However, deposits surprised negatively amid a sharp decline in CASA. As a result, the bank’s CD ratio increased to 89.4% vs 86.6% in Q4 FY26.
JM Financial also noted that Kotak Mahindra Bank reported relatively weaker deposit mobilisation. “ICICI Bank, Axis Bank and Kotak Bank are expected to continue delivering strong earnings growth, while Ujjivan, City Union Bank and DCB Bank should remain among the better-performing mid-sized lenders supported by healthy business growth and improving operating metrics,” the domestic brokerage said.
Also read: Kotak Mahindra Bank shares fall over 4% after Q1 update; advances jump 15% to Rs 5.12 lakh crore
Canara Bank, Union Bank of India, Punjab National Bank and Bank of Baroda shares meanwhile traded in the red with marginal losses.
Key technical levels for Nifty Bank
Following the sharp rally witnessed at the start of June, the banking index has entered a phase of time-wise correction, evident from the formation of three consecutive small-bodied candles on the weekly chart, Rajesh Bhosale, Technical Analyst at Angel One, had said after the two-session losing streak.
“Despite this consolidation, the broader structure remains constructive as Bank Nifty continues to hold above the breakout zone of the April month swing high around 57,500, which also coincides with the 200DSMA. The overall trajectory continues to remain positive, and the current consolidation appears to be a healthy pause within the prevailing uptrend. Momentum indicator RSI, which had earlier entered the overbought zone, has now cooled off towards the 60 mark, creating room for the next leg of the upmove to unfold. Hence, traders should continue to maintain a buy-on-dips approach,” he said.
Also read: Why the world’s biggest banks keep selling their India retail arms
The Nifty Bank index is likely to see resistance at 58,500–58,800, and a sustained move above this zone is likely to reignite the primary uptrend, according to the analyst. On the downside, he sees the banking index finding support at 57,000–56,500 zone. “From a stock-specific perspective, frontline private banking stocks continue to exhibit relative strength, while PSU banks were under pressure. Traders are therefore advised to be selective and focus on stronger private banking names for potential outperformance,” Bhosale said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
