Major banks delivered strong Q1 FY27 earnings, driven by healthy loan growth, higher net interest income and lower provisions. ICICI Bank, Axis Bank, Kotak Mahindra Bank and Punjab National Bank posted robust profit growth, while HDFC Bank reported steady earnings despite slight asset-quality pressure. Overall, the banking sector remained resilient, with improving profitability and mixed trends in asset quality.
Major private and public sector banks reported healthy profit growth for the June quarter, supported by loan expansion, higher net interest income and lower provisions in several cases. However, margins remained under pressure for some lenders, while asset-quality trends were mixed.
HDFC Bank Reports Moderate Profit Growth
HDFC Bank’s standalone net profit increased 5% year on year to ₹19,059.7 crore from ₹18,155.2 crore. Net interest income rose 6.7% to ₹33,534 crore from ₹31,438 crore.
Provisions and contingencies declined sharply by 78.8% to ₹3,059.8 crore from ₹14,441.6 crore, supporting the bank’s bottom line. However, asset quality weakened marginally on a sequential basis. Gross non-performing assets increased to 1.17% from 1.15%, while net NPA rose to 0.41% from 0.38%.
ICICI Bank Delivers Strong Earnings Growth
ICICI Bank’s standalone net profit grew 15.9% to ₹14,804.5 crore from ₹12,768.2 crore. Net interest income increased 12.7% to ₹24,384.4 crore from ₹21,634.5 crore.
Provisions and contingencies fell 30.5% to ₹1,260.5 crore from ₹1,814.6 crore. Gross NPA improved marginally to 1.38% from 1.40% in the previous quarter. However, net NPA increased to 0.35% from 0.33%.
Kotak Mahindra Bank’s Profit Jumps 25.6%
Kotak Mahindra Bank reported a 25.6% rise in standalone net profit to ₹4,123 crore from ₹3,281.7 crore. Net interest income grew 9.2% to ₹7,928.4 crore from ₹7,259.3 crore.
Provisions and contingencies declined 44.7% to ₹668.1 crore from ₹1,207.8 crore. Gross NPA improved to 1.18% from 1.20% sequentially, although net NPA increased to 0.27% from 0.25%.
Axis Bank Records Healthy Profit Growth
Axis Bank’s standalone net profit increased 22.5% to ₹7,113.9 crore from ₹5,806.1 crore. Net interest income rose 8% to ₹14,646.1 crore from ₹13,559.8 crore.
Provisions and contingencies fell 43.7% to ₹2,222.5 crore from ₹3,947.7 crore. Asset quality, however, weakened slightly. Gross NPA increased to 1.28% from 1.23%, while net NPA rose to 0.39% from 0.37%.
Punjab National Bank Posts Sharp Profit Surge
Punjab National Bank reported the strongest profit growth among the lenders. Standalone net profit surged 213.6% to ₹5,253.3 crore from ₹1,675 crore.
Net interest income rose 2.1% to ₹10,798.4 crore from ₹10,578.1 crore. Provisions and contingencies increased 67.5% to ₹541.2 crore from ₹323.1 crore. However, tax expenses declined 66% to ₹1,724.7 crore from ₹5,083.3 crore.
Asset quality continued to improve, with gross NPA falling to 2.78% from 2.95% and net NPA declining to 0.28% from 0.29%.
RBL Bank Reports Improvement in Asset Quality
RBL Bank’s standalone net profit rose 27% to ₹254 crore from ₹200 crore. Net interest income increased 12% to ₹1,654 crore from ₹1,481 crore.
Provisions and contingencies rose 35% to ₹599 crore from ₹442 crore. Despite higher provisions, asset quality improved. Gross NPA declined to 1.30% from 1.45%, while net NPA fell to 0.37% from 0.39%.
Overall, earnings remained strong across the banking sector. Lower provisions supported profits at most private banks, while Punjab National Bank stood out with a sharp rise in earnings and continued improvement in asset quality.
