According to reports from Mint and NDTV Profit, shares of HDFC Bank, ICICI Bank, and Yes Bank remain in focus following their Q1 FY27 results announced on Saturday, 18 June 2026. ICICI Bank reported a 16% year-on-year increase in net profit to ₹14,804 crore, beating estimates of ₹13,373 crore, while HDFC Bank posted a standalone net profit of ₹19,059 crore for the April-June quarter, marking a 5% year-on-year increase from ₹18,155 crore in the same quarter of the previous financial year. The bank's net interest income (NII) increased 6.7% year-on-year to ₹33,534 crore, compared with ₹31,438 crore in the corresponding quarter of the previous fiscal. ICICI Bank's net interest income rose 13% year-on-year to ₹24,385 crore, significantly outperforming HDFC Bank's growth rate. As per latest reports, provisions declined significantly to ₹3,060 crore from ₹14,441 crore year ago, indicating the bank's improved ability to absorb risk. However, HDFC Bank's performance failed to beat the consensus view, with its net profit up just 5% compared to expectations for stronger growth.
As reported by Mint and NDTV Profit, ICICI Bank demonstrated superior loan growth with nearly 20% year-on-year expansion to ₹16.3 trillion, comfortably ahead of the industry's 18.6% credit growth and HDFC's 16% growth to ₹30.4 trillion. ICICI's net interest margin (NIM) expanded 4 basis points sequentially to 4.36%, though primarily aided by higher interest on tax refunds, while return on assets (ROA) improved from 2.4% in Q4 to 2.5% in Q1. HDFC Bank continues to grapple with post-merger challenges, with its loan-to-deposit ratio (LDR) of 96% constraining credit growth compared to ICICI's 89%. JM Financial Institutional Securities notes that HDFC's liquidity coverage ratio (LCR) remained at 115%, lower than ICICI's 122%, while the bank's CASA ratio of 32% remains significantly below ICICI's almost 40%. NIM declined about 10 basis points in Q1 to 3.4% due to high-cost borrowings inherited from the HDFC Ltd merger, contributing to HDFC's slower profit growth despite faster deposit growth of 15% versus ICICI's 14%. According to The Financial Express, Axis Bank reported the strongest deposit growth among the three lenders with total deposits increasing 18% year-on-year to ₹13,72,936 crore, while ICICI Bank maintained healthy momentum with deposits growing 14% year-on-year.
As reported by Mint and NDTV Profit, ICICI Bank's asset quality strengthened further during the quarter with Gross non-performing assets (GNPA) improving to 1.38% from 1.67% a year ago, better than Bloomberg's estimate of 1.45%, while Net NPAs eased to 0.35% from 0.41% in the year-ago period, also beating the consensus estimate of 0.37%. ICICI Bank's operating profit rose to ₹20,386 crore, up from ₹17,505 crore in Q1 FY26, and ahead of analysts' estimate of ₹19,278 crore. HDFC Bank's asset quality worsened as compared to the preceding quarter with Gross NPA rising to 1.17% from 1.15% and Net NPA rising to 0.41% from 0.38%. The bank reported a net interest margin (NIM) of 3.26% on total assets and 3.40% on interest-earning assets, with operating profit declining 21.2% to ₹28,168 crore from ₹35,734 crore. Yes Bank's advances grew 18.3% YoY and deposits increased 14.3% YoY, with retail asset disbursements surging 27.5% YoY. According to The Financial Express, Axis Bank also delivered stable credit quality with Gross NPA improving to 1.28% from 1.54% year earlier, while HDFC Bank's Gross NPA stood at 1.17%, improving from 1.40% a year earlier.
As reported by Upstox, HDFC Bank's Q1FY27 net-interest margins contracted from 3.4% in Q4FY26 and Q1FY26 to 3.26% in Q1FY27, the contraction could be primarily driven by higher credit costs and lower yields on funds. HDFC Bank's Q1FY27 yield on advances stood at 7.7%, down from 7.8% sequentially and 8.1% in Q1FY26, while the cost of funds remained unchanged at 4.4%. On the other hand, ICICI Bank saw a marginal improvement in net-interest margins at 4.36% as compared to 4.32% in Q4FY26 and 4.34% in Q1FY26, despite a fall in yields to 8.17% vs 8.62% in Q1FY26. ICICI Bank managed to post a major improvement in the cost of funds from 5.02% in Q1FY26 to 4.51% in Q1FY27, which cushioned the growth. HDFC Bank's higher interest expenses dented the overall net-interest income growth for the quarter, while ICICI Bank's outperformance was largely driven by superior growth in credit growth across all segments.
According to Mint reports, Seema Srivastava, Senior Research Analyst at SMC Global Securities, recommends ICICI Bank as the most attractive risk-reward bet among large private banks. She notes that over the past five years, ICICI Bank has consistently gained market share without sacrificing asset quality, backed by a strong digital and retail engine. For Yes Bank, Srivastava emphasizes that the thesis rests on execution: scaling granular deposits, lifting RoA to 1%+, and sustaining 15%+ loan growth. She suggests a balanced approach would overweight ICICI Bank, hold HDFC Bank for defensiveness, and use Yes Bank only for tactical upside. As per latest analysis, HDFC Bank leads on profitability and resilience in provisioning, while ICICI Bank demonstrates robust NII-led expansion with better efficiency. Harshal Dasani, Business Head – INVasset PMS, believes the Q1 earnings season reinforces a familiar trend where the gap between top private sector banks and turnaround stories continues to widen, with ICICI Bank remaining the strongest pick on fundamentals, followed by Kotak Mahindra Bank, while HDFC Bank is recognized for its stability and long-term compounding potential. ICICI Bank now effectively holds better asset quality than HDFC Bank, with the latest data showing consistent improvement in GNPAs and NNPAs, while HDFC Bank's margin contraction remains the key drag on sentiment despite strong operational metrics.
