Summary:
India’s major private banks reported varied Q2 FY27 profit growth, with Axis Bank and Kotak Mahindra Bank posting strong increases. HDFC Bank grew more modestly, while margin pressure and deposit mobilisation remain key factors shaping the outlook for private lenders.
How did major private banks perform in Q2 FY27?
Shares of India’s top private sector banks like HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank have given mixed results for Q2FY27. Most lenders saw growth in net profit, higher loan disbursals and improving asset quality. However, pressure on net interest margins remained a concern. Profitability, deposit mobilisation and credit growth showed variations among major private banks in the September quarter results.
Q2 Results Of Private Banks: How Major Lenders Fared
Major private sector banks posted higher lending activity and improving asset quality in the July-September quarter of FY27. However, earnings growth varied considerably.
HDFC Bank & ICICI Bank Q2 Results: Profit Rises 4.7% & 20.1% respectively
HDFC Bank posted a modest 4.7% increase in standalone net profit YoY, while ICICI Bank reported stronger growth of 20.1%. Axis Bank recorded a 38% jump in profit, and Kotak Mahindra Bank’s standalone profit grew around 29%.
Several lenders witnessed pressure on net interest margins, reflecting changes in funding costs, deposit mix and lending yields, although earnings growth remained positive.
The results also indicated that deposit growth continues to be an important driver of credit expansion, particularly as banks compete to raise funds.
HDFC Bank Q2 Result: Profit Up 4.7% On Higher Deposits
HDFC Bank’s standalone net profit for Q2FY27 stood at ₹19,510 crore, a growth of 4.7% YoY compared to ₹18,641 crore in the corresponding quarter last year.
The bank's net interest income (NII) grew 9.7% YoY to ₹34,619 crore, supported by growth in advances. However, higher operating expenses and lower treasury trading profits weighed on overall profit growth.
Gross advances increased 16.3% YoY to approximately ₹32.20 lakh crore, while total deposits rose 18.8% to ₹33.27 lakh crore.
The bank’s gross non-performing assets (GNPA) ratio improved to 1.11% from 1.24% a year ago, while the net NPA ratio stood at 0.37%.
Net interest margin was 3.16% of total assets and 3.32% of interest-earning assets.
The results showed continued balance sheet expansion, although profit growth remained below the pace of loan and deposit growth.
ICICI Bank Q2 Results: Profit Up 20% On Strong Loan Growth
ICICI Bank posted a standalone net profit of ₹14,843 crore for Q2FY27, up 20.1% YoY from ₹12,359 crore in Q2FY26.
Net interest income increased 17.7% YoY to ₹25,339 crore, while core operating profit grew 21.8% to ₹20,805 crore.
The bank’s total loan book expanded 30% YoY to ₹18.32 lakh crore, while deposits reached ₹20.50 lakh crore, up 27.1%. Excluding the impact of certain foreign currency non-resident deposits and related lending, loan growth stood at 24.1% and deposit growth at 17%.
However, net interest margin declined to 4.18% from 4.36% in the preceding quarter and 4.30% a year earlier.
Asset quality remained stable, with the net NPA ratio at 0.30% as of September 30, 2026.
The September quarter results reflected strong core operating growth, although moderation in margins remained an important development.
Kotak Mahindra Bank, IndusInd Bank And Axis Bank Q2 Numbers
Axis Bank reported a 38% YoY increase in Q2FY27 standalone net profit to ₹7,003 crore. Net interest income rose 12% to ₹15,371 crore, while net interest margin stood at 3.36%.
The bank’s advances increased 23% YoY, while deposits grew 21%. Its gross NPA ratio improved to 1.16% from 1.46% a year earlier.
Kotak Mahindra Bank reported standalone net profit of approximately ₹4,211 crore, up 29% YoY. Higher lending activity helped net interest income increase 16% to around ₹8,460 crore. However, its net interest margin declined to 4.31% from 4.53% in Q1FY27.
IndusInd Bank, in contrast, reported consolidated net profit of ₹1,242 crore for Q2FY26, compared with a loss of ₹437 crore. Its net interest income stood at ₹4,569 crore, while the gross NPA ratio improved to 2.73% from 3.60% in the year-ago period.
Q2FY27 Private Bank Results Comparison
| Bank | Net Profit Q2FY27 | YoY Profit Growth | Net Interest Margin |
| HDFC Bank | ₹19,510 crore | +4.7% | 3.16% |
| ICICI Bank | ₹14,843 crore | +20.1% | 4.18% |
| Axis Bank | ₹7,003 crore | +38% | 3.36% |
| Kotak Mahindra Bank | ₹4,211 crore | +29% | 4.31% |
| IndusInd Bank | ₹1,242 crore | Loss to Profit | 3.23% |
All figures are standalone except for IndusInd Bank, which uses consolidated figures. HDFC Bank’s NIM is based on total assets, while other banks are based on their reported NIM measures.
The comparison highlights differences in earnings growth among private lenders. Axis Bank recorded the highest percentage growth in profit among the banks listed, while HDFC Bank reported the highest absolute quarterly profit.
Kotak Mahindra Bank and IndusInd Bank reported improved profitability despite margin pressure, while ICICI Bank continued to deliver double-digit growth in net profit and net interest income.
What’s Next For HDFC Bank, ICICI Bank And Other Private Banking Stocks?
Q2FY27 results indicate that private sector banks continue to benefit from expanding loan books, deposit mobilisation and improving asset quality. However, the sustainability of earnings growth will depend on how effectively banks manage funding costs and protect lending margins.
For HDFC Bank, the focus will remain on improving profitability alongside continued loan growth while maintaining a balance between deposits and advances.
ICICI Bank’s performance in the coming quarters will depend on maintaining credit growth and managing the recent moderation in net interest margins.
Axis Bank and Kotak Mahindra Bank will need to sustain earnings growth while keeping operating expenses and funding costs under control. For IndusInd Bank, sustaining its return to profitability and further improving asset quality will remain important.
Another key factor will be the impact of interest rate movements on lending yields and deposit costs. Changes in borrowing rates could influence interest income and overall profitability across the banking sector.
Overall, the Q2FY27 numbers suggest that private lenders continue to expand, although earnings momentum differs across banks. The coming quarters will show whether stronger credit growth can translate into sustained profitability without further pressure on margins.
