ICICI Bank reported a strong 20.1% year-on-year rise in standalone net profit to ₹14,843 crore in Q2 FY27, according to reports from LiveMint. The bank's net interest income increased 17.7% to ₹25,339 crore, supported by robust loan growth, though net interest margin declined 12 basis points sequentially to 4.18%. The bank demonstrated exceptional credit momentum with 30% year-on-year and 12% quarter-on-quarter growth, which remained strong even after excluding foreign currency non-resident deposits. Nuvama Institutional Equities retained its 'Buy' rating with a target price of ₹1,850, highlighting the bank's strong fundamentals and expecting return on assets of 2.2-2.3% and return on equity of around 17% over FY27-FY29.
HDFC Bank reported a 4.7% year-on-year rise in standalone net profit to ₹19,510 crore in Q2 FY27, as reported by LiveMint. The bank's gross non-performing asset ratio improved to 1.11% from 1.17% in the previous quarter, indicating better asset quality. NIM on earning assets declined eight basis points sequentially to 3.32%, while the bank maintained 16% year-on-year credit growth. However, the bank faced significant treasury headwinds with treasury gains falling sharply by ₹1,610 crore to ₹780 crore, which weighed on overall profitability despite strong core lending performance. Anup Bagchi is scheduled to become managing director and CEO on October 27, 2026, marking a crucial leadership transition period for the country's largest private-sector lender.
Axis Bank reported a 37.6% year-on-year increase in standalone net profit to ₹7,003 crore in Q2 FY27, according to LiveMint reports. The bank's net interest income rose 12% to ₹15,371 crore, while NIM stood at 3.36% and operating profit increased 6% to ₹11,083 crore. Credit growth remained strong at 22% year-on-year and 9% quarter-on-quarter, though NIM declined 10 basis points sequentially. However, lower treasury gains and higher staff costs resulted in a profit miss of around 7% against Nuvama's estimates, despite the strong credit momentum.
Nuvama Institutional Equities retained 'Buy' ratings on all three banks with specific target prices of ₹1,850 for ICICI Bank, ₹950 for HDFC Bank, and ₹1,650 for Axis Bank, as reported by LiveMint. Systematix Institutional Research also maintained 'Buy' ratings with target prices of ₹1,750 for ICICI Bank, ₹875 for HDFC Bank, and ₹1,700 for Axis Bank. The brokerages highlighted that ICICI Bank stands out for its credit growth, profitability, and return ratios, with Nuvama's ₹1,850 target price and Systematix's ₹1,750 target price reflecting positive outlook on the lender. HDFC Bank offers potential recovery opportunity with improving asset quality, while Axis Bank's strong credit momentum and expected margin recovery are positives despite the quarterly profit miss. For investors, the key question remains whether stronger interest income and improving asset quality can offset margin pressure and volatile treasury earnings in coming quarters.
