From mint · Dhanya Nagasundaram · · 2m
ICICI Bank vs HDFC Bank vs Axis Bank: Q2 Stock Picks
ICICI Bank leads Q2 results with strong growth; HDFC Bank prepares for CEO change; Axis Bank misses profit estimates.
In brief
ICICI Bank leads Q2 results with strong growth; HDFC Bank prepares for CEO change; Axis Bank misses profit estimates. ICICI Bank's strong earnings and credit growth make it the preferred stock among large private banks after Q2 results. Originally reported by mint.
Q2 Results Overview
India’s three largest private lenders posted mixed Q2 results with ICICI Bank showing strong earnings growth, HDFC Bank improving asset quality, and Axis Bank reporting a profit increase despite missing estimates.
ICICI Bank Performance
ICICI Bank reported a 20.1% year-on-year rise in standalone net profit to ₹ 14,843 crore in Q2 FY27 with strong loan growth and a 7% profit beat against estimates.
ICICI Bank Credit Growth
ICICI Bank showed 30% year-on-year and 12% quarter-on-quarter credit growth, supported by strong loan growth excluding foreign currency non-resident deposits.
ICICI Bank Brokerage Ratings
Nuvama Institutional Equities and Systematix Institutional Research both retained a 'Buy' rating on ICICI Bank with target prices of ₹ 1,850 and ₹ 1,750 respectively.
HDFC Bank Performance
HDFC Bank reported a 4.7% year-on-year rise in standalone net profit to ₹ 19,510 crore with improved asset quality and a gross non-performing asset ratio of 1.11%.
HDFC Bank Leadership Transition
Anup Bagchi is set to take over as managing director and chief executive of HDFC Bank during a leadership transition period.
Axis Bank Performance
Axis Bank reported a 37.6% year-on-year increase in standalone net profit to ₹ 7,003 crore with strong credit growth but a profit miss of 7% against estimates.
Axis Bank Margin Pressures
Axis Bank's net interest margin declined 10 basis points sequentially with lower treasury gains and higher staff costs contributing to the profit miss.
Brokerage Views
All three banks received 'Buy' ratings from brokerages with Nuvama and Systematix maintaining positive outlooks on credit growth and margin recovery.
ICICI Bank Preferred Pick
Nuvama Institutional Equities identifies ICICI Bank as the preferred large-cap private bank with expected return on assets of 2.2, 2.3% and return on equity of 17% over FY27, FY29.
Investor Recommendations
Investors should consider ICICI Bank for strong growth, HDFC Bank for leadership transition opportunities, and Axis Bank for margin recovery potential despite profit misses.
The key point
ICICI Bank's strong earnings and credit growth make it the preferred stock among large private banks after Q2 results.
