Shares of HDFC Financial institution Ltd. and ICICI Financial institution Ltd. surged to report highs on Monday after each posted stronger-than-expected earnings over the weekend. Brokerage agency Motilal Oswal Monetary Companies Ltd. revised its FY26 earnings estimate for HDFC Financial institution up by 3% and raised ICICI Financial institution’s value goal by 3% to ₹1,650.
Shares of HDFC Financial institution climbed greater than 2% on Monday, hitting a one-year excessive of ₹1,950 on each the BSE and NSE.(REUTERS/file)
Axis Financial institution Ltd., India’s third-largest non-public lender, is about to report its earnings on Thursday.
In the meantime, the implied volatility unfold between the Nifty Financial institution Index and the broader Nifty 50 Index has narrowed to ranges final seen in early April, reflecting improved dealer sentiment in direction of banking shares. As of Thursday’s shut, the April 55,000-rupee name possibility had the very best open curiosity, indicating additional potential upside for the financial institution index.
On Monday, the Nifty Financial institution Index jumped as a lot as 1.9%, crossing the earlier peak set in September. Since April 2, when the US introduced reciprocal tariffs, the index has risen over 7%, outpacing the Nifty 50’s greater than 3% achieve, in accordance with Bloomberg knowledge.
Analysts consider Indian banks stay largely insulated from international commerce tensions attributable to their restricted worldwide publicity. Additionally they level to stable fundamentals throughout most lenders.
“Overall outlook for banking stocks is positive,” Sandip Sabharwal, founding father of analysis home Asksandipsabharwal.com, advised Bloomberg. “Most banks have significant capital adequacy ratios, good additional provisions as buffers as well as accelerating growth prospects as monetary policy eases and liquidity improves,” he added.
ICICI Financial institution shares
ICICI Financial institution shares rose over 2% on Monday morning, day after the lender posted a 15.7% rise in consolidated internet revenue for the March quarter, reaching ₹13,502 crore. The inventory touched a 52-week excessive of ₹1,437 on the BSE, gaining 2.15%, and equally climbed 2.08% to ₹1,436 on the NSE.
On a standalone foundation, ICICI Financial institution posted a internet revenue of ₹12,630 crore for This autumn FY25, an 18% enhance from ₹10,708 crore in the identical quarter final 12 months. Core internet curiosity earnings rose 11% to ₹21,193 crore, and non-interest earnings (excluding treasury) grew 18.4% to ₹7,021 crore.
The financial institution additionally improved its asset high quality, with gross NPAs falling to 1.67% in March 2025 from 1.96% in December 2024.
HDFC Financial institution shares
Shares of HDFC Financial institution climbed greater than 2% on Monday, hitting a one-year excessive of ₹1,950 on each the BSE and NSE. This got here after the financial institution reported a 7% year-on-year enhance in consolidated internet revenue for the March quarter, reaching ₹18,835 crore.
On a standalone foundation, internet revenue stood at ₹17,616 crore for the quarter, up from ₹16,512 crore in the identical interval final 12 months. Internet curiosity earnings rose 10.3% to ₹32,070 crore, pushed by a slight rise in internet curiosity margin to three.5% and a 5.4% development in gross advances.
Nevertheless, the financial institution flagged issues round pricing stress in residence and company loans, affecting mortgage development. CFO Srinivasan Vaidyanathan famous that HDFC Financial institution selected to average mortgage enlargement and as a substitute prioritise deposits, which grew over 15% throughout the fiscal.
(With inputs from businesses)