India's bank stocks set to snap 6-week losing streak on strong quarterly updates, RBI rate hike

ICICI Bank

09/10/2026 10:22

** India's Nifty Bank index .NSEBANK rises 1.6% so far this week, set to snap six consecutive weeks of losses
** Index outperforms benchmark Nifty 50 .NSEI, which is up 0.5% for the week
** Bank stocks gain after quarterly business updates and on RBI rate hike
** Central bank increased repo rate by 25 bps and signalled further hikes; higher interest rates can boost lenders' net interest margins if lending rates rise faster than deposit costs 
** Bernstein says strong credit growth, asset quality and healthy profitability support Indian banks
** Kotak Mahindra Bank KTKM.NS up 6.3% for the week, second-biggest weekly gainer among bank stocks, on strong quarterly update and continued optimism on new CEO appointment
** YTD, bank index down 7.28% vs 13.89% decline in Nifty 50 
 

 (Reporting by Anushka Rajvedi in Bengaluru)
 ((mailto: anushka.rajvedi@thomsonreuters.com))