Private banks demonstrated stronger overall performance in Q1FY27 compared to their public sector counterparts, with 18 private banks reporting aggregate net profit of ₹55,019 crore versus ₹50,173 crore for 12 public-sector banks. According to Bloomberg data, private-bank profits grew 15.6% year-on-year, ahead of the 13.5% growth recorded by PSU banks. Private lenders also expanded deposits faster, rising 14.0% year-on-year to ₹96.59 trillion, against 10.1% growth for PSUs to ₹157.25 trillion. However, credit growth was largely neck-and-neck, with advances at private banks rising 17% to ₹87.72 trillion and PSUs rising 17.4% to ₹129.65 trillion.
Nifty PSU Bank index rose 1.81% following exceptional Q1FY27 results from major public sector banks. Union Bank of India delivered its highest ever quarterly net interest income of ₹100.37 billion with quarterly net profit at ₹53.32 billion, up 29.57% YoY. The bank's asset quality improved significantly with gross NPA ratio declining to 2.65% from 3.52% year-ago, while net NPA ratio dropped to 0.47% with a healthy provision coverage ratio of 95.05%. Punjab National Bank reported net profit surging 213.6% YoY to ₹52.53 billion, aided by high base effect, with gross NPA ratio improving to 2.78% from 3.78% year-ago. Bank of Baroda saw global business cross ₹30.5 trillion, up 15.4% YoY, with organic retail advances climbing 18.4% YoY and Canara Bank achieving net interest income of ₹102.15 billion for the first time.
Dr Agarwals Health Care shares declined 6% after 4.07 crore shares (12.9% equity) worth ₹2,065 crore changed hands at ₹506.5/share via block deals. Similarly, Tenneco Clean Air India share price fell 2% following a block deal where 3.2 crore shares (7.9% equity) worth ₹1,699 crore were traded at ₹529/share. According to reports from Moneycontrol, these significant block transactions dominated trading activity on August 12.
RHI Magnesita India shares slipped nearly 5% despite reporting strong Q1 results with profit jumping 83.2% to ₹64.6 crore compared to ₹35.3 crore in the previous year. Revenue also showed growth, rising 5.6% to ₹1,014 crore versus ₹960.3 crore. However, as reported by Moneycontrol, the positive earnings were overshadowed by the stock's decline following the block deal impact.
On the positive side, Nifty PSU Bank index rose 1.81%, while Nifty Metal gained 0.51% and Nifty Bank advanced 0.28%. According to Moneycontrol reports, these sectors led the gains amid ongoing earnings season activity. However, broader market sentiment remained cautious with Nifty Realty falling 1.07%, Nifty Consumer Durables declining 0.92%, and Nifty IT dropping 0.74%. The Nifty IT Index slumped over 720 points at intraday trading, with the sector showing no gainers amid ongoing earnings season.
Market breadth remained slightly negative with 1,598 stocks advancing against 1,758 declining on the BSE, indicating a cautious undertone in the broader market despite continued activity in individual stocks. As reported by Moneycontrol, the Nifty midcap and smallcap indices both declined 0.3% each, reflecting the mixed sentiment across market segments. Earnings and company-specific triggers continued to drive sharp moves across mid- and small-cap stocks throughout the trading session.
