ICICI Bank earnings drew stronger brokerage backing than HDFC Bank’s September-quarter results, as analysts favored ICICI’s profit growth and asset quality while viewing HDFC more as a recovery prospect. Both Indian lenders’ shares nevertheless closed lower on October 19, 2026, alongside a decline in the broader market.
Key Takeaways
- ICICI Bank’s standalone quarterly profit rose 20.1%, with lower nonperforming loan ratios.
- Brokerages remained positive on HDFC Bank, but their outlook depended more on an expected earnings recovery.
- Both stocks fell on October 19 despite the favorable brokerage assessments.
Table of Contents
- ICICI Bank earnings show growth despite narrower margins
- HDFC Bank backing rests more on recovery expectations
- Share prices diverge from positive brokerage views
- Conclusion
ICICI Bank earnings show growth despite narrower margins
ICICI Bank reported standalone profit after tax of ₹14,843 crore for the quarter ended September 30, 2026, its second quarter of fiscal 2027. That compared with ₹12,359 crore a year earlier.
The bank’s September-quarter performance review showed core operating profit rising 21.8% to ₹20,805 crore and net interest income increasing 17.7% to ₹25,339 crore. Operating expenses grew more slowly, at 8.5%.
The growth came despite a narrower net interest margin, which measures the spread earned on interest-bearing assets. The margin was 4.18%, compared with 4.36% in the preceding quarter and 4.30% a year earlier. The preceding quarter included an eight-basis-point benefit from interest on a tax refund, while that benefit was negligible in the September quarter.
Asset-quality measures improved. The gross nonperforming asset ratio declined to 1.20% from 1.38% in June and 1.58% a year earlier. The net ratio fell to 0.30%, from 0.35% and 0.39%, respectively.
| Item | Details |
|---|---|
| ICICI Bank shares | Closed at ₹1,382 on October 19, 2026, down 1.1%. |
| HDFC Bank shares | Closed at ₹712 on October 19, 2026, down 2.3%. |
| Nifty | Declined 1.11% in the same session. |
| Bank Nifty | Declined 0.6% in the same session. |
HDFC Bank backing rests more on recovery expectations
Brokerages’ assessment of HDFC Bank was more measured following modest profit growth and pressure on margins. Their positive outlook rested partly on expectations of an earnings recovery and improved execution amid leadership changes, rather than equally strong current-quarter momentum.
HDFC Bank’s consolidated net profit after minority interest reached ₹20,700.03 crore, compared with ₹19,610.67 crore a year earlier, an increase of about 5.6%. Those group-level figures include subsidiaries and should not be treated as directly comparable with ICICI Bank’s standalone profit.
The distinction between results and expectations matters: HDFC’s anticipated recovery remains an analyst view, not a completed improvement. ICICI’s stronger reported growth and lower bad-loan ratios provided a more immediate basis for the favorable assessments.
Share prices diverge from positive brokerage views
The favorable assessments did not translate into gains in the October 19 session. Both lenders declined as the Nifty and Bank Nifty also finished lower.
Those simultaneous declines do not establish a single cause for either stock’s move. Brokerage recommendations describe expectations, whereas closing prices capture the outcome of that day’s trading.
Conclusion
The post-results contrast was between ICICI’s demonstrated earnings growth and HDFC’s expected recovery. Subsequent quarterly disclosures will provide the test of whether margin pressure eases while credit quality remains resilient; no recovery should be treated as assured.
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This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
