From Financialexpress · Khushboo Kumari · · 1m 20s
Bank Q2 Results: HDFC, Axis Beat Estimates
HDFC Bank and Axis Bank beat Q2 estimates as brokerages forecast margin recovery ahead.
In brief
HDFC Bank and Axis Bank beat Q2 estimates as brokerages forecast margin recovery ahead. HDFC Bank and Axis Bank reported Q2FY27 results exceeding estimates with strong loan growth, while brokerages expect net interest margins to recover through Q4FY27. Originally reported by Financialexpress.
Q2FY27 Results Overview
HDFC Bank, ICICI Bank, and Axis Bank reported healthy Q2FY27 performances with strong loan growth, higher fee income, and lower provisions.
HDFC Bank Q2 Highlights
HDFC Bank profit beat estimates by 3% with core operating profit growing 12% YoY and 7% QoQ, though net interest margin declined 8 basis points to 3.32%.
ICICI Bank Q2 Highlights
ICICI Bank reported 20% YoY net profit growth with loan growth at 30% YoY and 12% QoQ, though CASA ratio fell to 36.1%.
Axis Bank Q2 Highlights
Axis Bank reported 37.6% net profit growth with loan growth at 23% YoY, though credit-deposit ratio rose to 94.6%.
Margin Recovery Forecast
Brokerages expect net interest margins to recover as banks deploy FCNR(B) funds and reprice floating-rate loans by Q4FY27.
Key Factors for Recovery
Rising credit-deposit ratios, insurance income exposure, and NIM recovery are critical factors to monitor for banks.
What Happens Next
Banks are expected to see margin recovery by Q4FY27 as they deploy FCNR(B) liquidity and reprice floating-rate loans.
The one thing
HDFC Bank and Axis Bank reported Q2FY27 results exceeding estimates with strong loan growth, while brokerages expect net interest margins to recover through Q4FY27.
