India’s top 9 private banks reported a combined net profit of ₹43,641 crore in Q1 FY26, showing just 2.7% growth quarter-on-quarter. This signals muted momentum despite broader economic expansion and rising credit penetration.
The data includes HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, IDFC First Bank, Yes Bank, Federal Bank, and RBL Bank — the top nine private banks in India .
Compared to Q1 FY24, these 9 banks reported a 19% increase in net profit. But the sequential (quarter-on-quarter) slowdown of just 2.7% signals slowing pace of growth in the sector.
HDFC Bank reported ₹10,110 crore in treasury gains and ₹9,130 crore from its stake sale in HDB Financial Services IPO. These one-time gains supported profits, while core business growth remained modest.
ICICI Bank posted ₹10,636 crore profit with treasury gains of ₹1,241 crore. Axis Bank reported ₹7,304 crore profit, including ₹1,420 crore from treasury operations. But loan growth stayed moderate across both the banks.
Kotak Mahindra Bank, IndusInd Bank, RBL Bank, and IDFC First Bank showed flat or modest profit growth in the June quarter. Kotak’s earnings remained nearly flat, while overall subdued results from the other banks impacted the sector’s performance.
Kotak Mahindra Bank, which posted nearly flat profit growth, is aiming for a recovery in the second half of the fiscal year. “There have been some speed bumps,” MD & CEO Ashok Vaswani told The Economic Times.
Analysts pointed to weak deposit growth, modest loan expansion, and margin pressure as key reasons for the sluggish quarter. For many banks, operating profit fell even though treasury gains boosted headline profits.
