Preview: Indian private lenders on track for Q2 profit growth on foreign currency deposit boost

HDFC Bank

16/10/2026 10:52

 ** Top Indian private lenders HDFC Bank HDBK.NS, ICICI Bank ICBK.NS, Axis Bank AXBK.NS and Yes Bank YESB.NS are set to report Q2 results on Saturday
** On Friday, ICBK up 0.4%, AXBK down 0.3%, HDBK flat, while YESB down 2.7%
** Analysts expect banks to report higher profit on strong loan and deposit growth during the quarter, boosted by subsidised foreign currency non-resident (FCNR) deposits raised via an RBI scheme
** However, analysts see the FCNR deposits putting short-term pressure on net interest margin 
** HDFC Bank expected to report a 4.75% y/y rise in profit, while ICICI Bank's profit is forecast to grow 15%, Axis Bank's 40% and Yes Bank's 46%- data compiled LSEG
** While net interest income is expected to rise across all four lenders, Motilal Oswal expects net interest margins to contract quarter-on-quarter by 8 basis points at HDFC Bank, 20 bps at ICICI Bank and 12 bps at Axis Bank.
** On Thursday, India's Supreme Court set aside the YESB's write-off of 84 billion rupees ($884.96 million)in additional tier-1 bonds during its 2020 rescue; YESB expects the move to reduce its core capital ratio by about 250 bps


($1 = 94.9200 Indian rupees)

 (Reporting by Nishit Navin in Bengaluru)
 ((nishit.navin@thomsonreuters.com))