Indian private banks catch up to state-run peers, outperformance still distant: Bernstein

Kotak Mahindra Bank

26/08/2026 08:50

** Growth gap between Indian public sector banks (PSBs) and private sector banks (PVBs) to narrow but several factors could delay market share reversal -- Bernstein
** Private sector banks have narrowed loan growth gap with PSBs, with a recovery in corporate lending, deposit traction helping them gain loan and deposit market share, analysts at Bernstein say
** Stronger NII growth for PSBs driven by "superior spread performance" -- Bernstein
** Brokerage says PSB outperformance is gradually moderating, though without a sharp inflection in favor of PVBs near-term
** Shares of private-sector lenders HDFC Bank HDBK.NS, ICICI Bank ICBK.NS Axis Bank AXBK.NS, Kotak Mahindra Bank KTKM.NS up between 0.31% and 3.52%
** Shares of Union Bank of India UNBK.NS, State Bank of India SBI.NS, Punjab National Bank PNBK.NS, Canara Bank CNBK.NS, Bank of Baroda BOB.NS, up between 0.51% and 1.1%
** YTD, Nifty Bank Index .NSEBANK down 2.94%

 (Reporting by Saikeerthi in Bengaluru)
 ((Saikeerthi@thomsonreuters.com; (+91) 8296756080))