Top 5 private banks’ Q2 results show diverging paths — ICICI stays at the top

The September quarter (2Q) of financial year 2026 (FY26) saw India’s top private lenders delivering a steady performance despite a narrowing net interest margin (NIM) environment.

Based purely on Q2 numbers, ICICI Bank once again topped the chart, maintaining its lead on profitability and asset quality metrics, while HDFC Bank’s momentum on loan growth signalled normalisation post-merger integration.

Kotak Mahindra Bank continued to expand robustly, Axis Bank posted an operational surprise, and IndusInd Bank remained under pressure due to elevated provisioning.

	HDFC	ICICI	Axis	Kotak	IndusInd
Loan Book	27,46,359	14,08,456	11,16,703	4,62,688	3,25,881
Growth YoY	9.90%	10.30%	11.70%	15.80%	-8.80%
Growth QoQ	4.40%	3.20%	5.40%	4.00%	-2.30%
Deposits	28,01,789	16,12,825	12,03,487	5,28,776	3,89,600
Growth YoY	12.10%	7.70%	10.70%	14.60%	-5.50%
Growth QoQ	1.40%	0.30%	3.60%	3.10%	-1.90%
CASA %	33.90%	39.20%	39.80%	42.30%	30.74%
QoQ	0bp	50bp	(50)bp	140bp	(64)bp

ICICI Bank: Consistent outperformer

ICICI Bank retained its leadership position this quarter, reporting the highest Return on Assets (ROA) among peers, with minimal NIM compression and the lowest credit cost in the group.

Loan growth at 10.3% YoY and 3.2% QoQ reflected steady business momentum, while deposit growth of 7.7% YoY underscored stable franchise strength. The bank’s ability to sustain profitability and manage asset quality efficiently positions it firmly as the sector’s benchmark performer.

Return Ratios
	HDFC	ICICI	Axis	Kotak	IndusInd
PAT	18,641	12,359	5,090	3,253	(437)
Growth YoY	10.80%	5.20%	-26.40%	-2.70%	NA
Growth QoQ	2.70%	-3.20%	-12.30%	-0.90%	NA
ROA	1.93%	2.33%	1.23%	1.88%	NA
Change YoY	0bp	(11)bp	(61)bp	(29)bp	NA
Change QoQ	0bp	(6)bp	(24)bp	(6)bp	NA

HDFC Bank: Growth normalisation back on track

HDFC Bank is gradually regaining its system-level loan growth trajectory, clocking a 9.9% YoY and 4.4% QoQ increase in advances. Despite an 8-basis-point NIM compression, the bank managed to defend its ROA at prior levels, aided by strong PAT growth and controlled credit cost at 0.5%.

Deposit growth of 12.1% YoY continues to support balance sheet expansion. The quarter reaffirms the lender’s return to normalised growth and steady profitability.

Margins
	HDFC	ICICI	Axis	Kotak	IndusInd
NIMs	3.27%	4.30%	3.73%	4.54%	3.32%
QoQ	(8)bp	(4)bp	(7)bp	(11)bp	(14)bp

Kotak Mahindra Bank: Growth solid, valuation key

Kotak Mahindra Bank delivered one of the strongest loan and deposit growths this quarter, with advances up 15.8% YoY and 4.0% QoQ, and deposits rising 14.6% YoY. The results were in-line with expectations and came without any negative surprises.

However, with the stock trading at a premium to peers, the stabilisation of ROA and potential for NIM expansion will be crucial factors determining valuation upside going ahead.

Asset Quality
	HDFC	ICICI	Axis	Kotak	IndusInd
NNPA	0.42%	0.39%	0.44%	0.32%	1.04%
Change QoQ	(5)bp	(2)bp	(1)bp	(2)bp	(8)bp
Credit Cost (calc)	0.51%	0.26%	0.73%	0.79%	3.08%
Change QoQ	~(5)bp	~(30)bp	(65)bp	(14)bp	102bp
Slippage Ratio (calc)	1.12%	1.50%	2.11%	1.41%	2.97%
Change QoQ	~(30)bp	~(40)bp	~(102)bp	~(22)bp	~(4)bp

Axis Bank: Positive surprise, provision impact noteworthy

Axis Bank posted a notable rebound in loan growth at 11.7% YoY and 5.4% QoQ, with NIM compression contained within 7 basis points. Asset quality saw sequential improvement, with gross slippages down 44% to ₹1,512 crore (vs ₹2,709 crore in the previous quarter), driven largely by lower technical slippages.

However, the bank made an RBI-directed one-time standard asset provision of ₹1,231 crore, which is classification-related and not reflective of asset stress. At current valuations, the stock’s attractiveness hinges on sustained profitability momentum.

IndusInd Bank: Structural cleanup underway

IndusInd Bank’s loan book declined for the second consecutive quarter, contracting by 8.8% YoY and 2.3% QoQ. The lender reported losses due to higher prudent provisioning, as slippages remained elevated.

Despite the weak quarter, the new management’s proactive stance on cleanup and conservative provisioning measures may pave the way for a gradual turnaround. The outlook remains cautiously positive, contingent on stabilisation of loan growth in the coming quarters.

Bottom line

The Q2 season underscores a clear divergence in performance among private sector banks. ICICI Bank continues to set the pace on profitability and risk control; HDFC Bank is firmly back on the growth track; Kotak remains fundamentally strong but valuation-rich; Axis delivered a surprise on growth and quality, while IndusInd’s reset phase is ongoing.