THE Clever banking index rose more than 400 points Monday on strong gains among heavyweights HDFC Bank, IndusInd Bank And ICICI Bank counterbalanced a crash of almost 4% in Kotak Mahindra Bank shares after first quarter trading updates.
The Nifty Bank index stood at 58,376, gaining almost 1%. The index ended a two-game losing streak today.
HDFC Bank Q1 Business UpdateShares of HDFC Bank were the biggest gainers in the index, jumping nearly 3 per cent after India’s largest private lender reported gross advances of Rs 30.61 lakh crore at the end of the April-June quarter of FY27, up 15.4 per cent year-on-year (YoY) from Rs 26.53 lakh crore reported in the corresponding quarter of the previous fiscal.
Its end-of-period deposits, meanwhile, increased 14.7 per cent year-on-year to Rs 31.71 lakh crore at the end of the first quarter of FY27, compared to Rs 27.64 lakh crore reported at the end of the corresponding quarter of FY26.
JM Financial noted that HDFC Bank reported healthy deposit mobilization. “HDFC Bank reported robust loan growth, marginally above estimates, while deposit growth was in line. As a result, the CD ratio increased marginally to 95.8% (from 94.6% in Q4FY26). We expect a slight contraction in margins this quarter and in our recent preliminary note, we estimated a margin contraction of 2 bps QoQ,” Motilal Oswal said in his note.
Also read: HDFC Bank Q1 Business Update | Gross advances rise 15% to Rs 30.61 lakh crore
Shares of AU Small Finance Bank and IndusInd Bank gained nearly 2% each. AU Small Finance Bank’s gross loan portfolio grew by around 23 per cent year-on-year to Rs 1.44 lakh crore, while total deposits increased by nearly 24 per cent to Rs 1.58 lakh crore. IndusInd Bank’s net advances, however, declined by over 2 per cent YoY to Rs 3.26 lakh crore, but deposits increased by 4.5 per cent YoY to Rs 4.15 lakh crore.
ICICI Bank, Axis Bank, Federal Bank, State Bank of India And Yes Bank stocks gained as much as 1%, as seen at 11 a.m.
Also read: Yes, bank shares gain after Q1 advances rise 18% to Rs 2.85 lakh crore, deposits up 14%
Kotak Mahindra Bank Q1 Business UpdateBucking the trend, shares of Kotak Mahindra Bank crashed 4%, weighing heavily on the Nifty Bank index. This came after the private lender announced that its net advances for the quarter ended June 30, 2026 increased by over 15 per cent year-on-year (y-o-y) to Rs 5.12 lakh crore, compared to Rs 4.45 lakh crore reported during the same period last year. Meanwhile, deposits grew nearly 12 per cent YoY to Rs 5.73 lakh crore in Q1 FY27 from Rs 5.13 lakh crore in Q1 FY26. Sequentially though, deposit growth was marginal at 0.1 per cent QoQ as against Rs 5.72 lakh crore in Q4 FY26.
Motilal Oswal noted that Kotak Mahindra Bank’s loan growth in the first quarter remained largely in line with its estimate. However, deposits surprised negatively in a context of sharp decline in CASA. As a result, the bank’s CD ratio increased to 89.4% from 86.6% in Q4FY26.
JM Financial also noted that Kotak Mahindra Bank reported relatively lower deposit mobilization. “ICICI Bank, Axis Bank and Kotak Bank are expected to continue to deliver strong profit growth, while Ujjivan, City Union Bank and DCB Bank are expected to remain among the best-performing mid-sized lenders, supported by healthy business growth and improving operating metrics,” the domestic brokerage said.
Also read: Kotak Mahindra Bank shares fall over 4% after Q1 update; advances jump 15% to Rs 5.12 lakh crore
Canara Bank, Union Bank of India, Punjab National Bank And Bank of Baroda Stocks meanwhile traded in the red with marginal losses.
Key Technical Levels for Nifty BankAfter the strong rally observed in early June, the banking index entered a phase of temporal correction, as evidenced by the formation of three consecutive small candles on the weekly chart, Rajesh Bhosale, technical analyst at Angel One, had said after the two-game losing streak.
“Despite this consolidation, the broader structure remains constructive as Bank Nifty continues to hold above the breakout zone of the April high around 57,500, which also coincides with the 200DSMA. The overall trajectory continues to remain positive and the current consolidation appears to be a healthy break in the prevailing uptrend. The RSI momentum indicator, which had earlier entered the overbought zone, has now cooled towards the 60 mark, thereby creating room for the next leg. “Therefore, traders should continue to maintain a buy approach on dips,” he said.
Also read: Why the world’s biggest banks continue to sell their retail businesses in India
The Nifty Bank index is likely to encounter resistance between 58,500 and 58,800, and a sustained move above this zone is likely to restart the primary uptrend, according to the analyst. On the downside, he believes that the banking index will find support in the area of 57,000 to 56,500. “From a stock-specific perspective, front-line private banking stocks continue to show relative strength, while PSU banks were under pressure. Therefore, traders are advised to be selective and focus on stronger private banking names for potential outperformance,” Bhosale said.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
