Private sector banks led the charge, with HDFC Bank reporting a net profit of Rs 16,890 crore, up 18% from the previous year. ICICI Bank followed closely with profits of Rs 12,450 crore, while Axis Bank reported Rs 7,200 crore in quarterly earnings.
Public sector banks also demonstrated strong growth, with State Bank of India posting its highest-ever quarterly profit of Rs 18,500 crore. Punjab National Bank and Bank of Baroda showed significant improvements in asset quality, with gross NPAs declining below 4%.
The robust performance is attributed to healthy credit growth of 16%, improved net interest margins, and lower provisioning requirements as asset quality continues to strengthen across the sector.
Analysts remain bullish on banking stocks, with many expecting the momentum to continue through FY27 as India’s economic growth supports higher lending activity.
