Banking Stocks React To Q1 Updates As HDFC Bank, Axis Bank Gain And Kotak Slips

Private sector banking stocks witnessed mixed moves on Monday after lenders announced their provisional business updates for the quarter ended June 30. HDFC Bank share price and Axis Bank share price gained during the session following steady growth in loans and deposits, while Kotak Mahindra Bank share price declined despite reporting double-digit business growth.

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HDFC Bank, Axis Bank Post Healthy Growth

HDFC Bank share price rose as the lender reported gross advances of ₹30.61 lakh crore as of June 30, up 15.4% year-on-year. Total deposits increased 14.7% to ₹31.71 lakh crore, according to the bank’s exchange filing.

Axis Bank share price also traded higher after the bank reported an 18.8% year-on-year rise in gross advances to ₹12.73 lakh crore. Total deposits grew 18.2% to ₹13.73 lakh crore, while CASA deposits increased 11.4% to ₹5.22 lakh crore. Term deposits registered stronger growth of 22.8%, reaching ₹8.51 lakh crore.

The updates were released ahead of the lenders’ financial results for the April-June quarter and provided an early indication of business momentum during the period.

Kotak Mahindra Bank Share Price Declines

Kotak Mahindra Bank share price fell around 3.5% after investors reacted to the lender’s quarterly update. The bank reported a 15.1% year-on-year increase in net advances to ₹5.12 lakh crore, while total deposits rose nearly 12% to ₹5.73 lakh crore.

The bank also reported current and savings account (CASA) deposits of ₹2.31 lakh crore, reflecting annual growth of 10.2%. Despite reporting double-digit expansion in key business metrics, the stock underperformed its peers during the session.

IndusInd Bank also released its quarterly update, reporting sequential growth of 3.3% in advances and 3.8% in deposits. On a year-on-year basis, advances declined 2.3%, while deposits increased 4.5%.

Bank Nifty Trades Higher

The broader banking index remained in positive territory as investors assessed the business updates released over the weekend. HDFC Bank share price and Axis Bank share price contributed to gains in the Bank Nifty index, while AU Small Finance Bank, ICICI Bank and IndusInd Bank also traded higher during the session.

As per reports, brokerage firm Jefferies noted that HDFC Bank, IndusInd Bank and Bandhan Bank reported stronger-than-expected loan growth, while Kotak Mahindra Bank’s growth was relatively softer.

Focus Shifts To Quarterly Earnings

The latest business updates offer an initial view of loan and deposit trends before banks announce their detailed June quarter earnings. Investors are expected to closely track asset quality, net interest margins and deposit mobilisation in the upcoming results, with the recent operational data setting the stage for the earnings season across the banking sector.