Bank stocks rise as pre-earnings updates show strong June-quarter loan growth

Bandhan Bank

06/07/2026 06:52

** Shares of lenders IndusInd Bank INBK.NS, AU Small Finance Bank AUFI.NS, Bandhan Bank BANH.NS and Karur Vysya Bank KARU.NS rise on strong first-quarter updates
** Analysts say pre-earnings updates show strong loan growth in June quarter
** Morgan Stanley says most banks post faster year-on-year loan and deposit growth, broadly in line with system-level trends through mid-June
** Notes loan and deposit growth picked up on a seasonally adjusted basis for most lenders, while CASA ratios moderated and loan-to-deposit ratios increased as expected
** Overall, bank index .NSEBANK up 0.6%, with benchmark Nifty 50 .NSEI up 0.6%
** BANH leads gains among pack, rising 2.8%, trailed by INBK, which is up 2%
** AUFI and KARU climb 1.8% and 1.6%, respectively
** "Most of the banks which reported June quarter provisional numbers have met or exceeded our estimates," Piran Engineer of CLSA says 
** "While overall growth has been strong, we remain watchful of the granularity within loan book expansion and potential impact of declining CASA ratios on margins," Engineer says
** YTD, BANH stock's 41.3% jump highest while AUFI's 8.3% climb the smallest



 (Reporting by Kashish Tandon in Bengaluru)
 ((Kashish.tandon@thomsonreuters.com))