Banking stocks trade mixed after Q1 earnings, ICICI and HDFC Bank lead gains, Bandhan and RBL Bank drag.

Banking stocks traded mixed in early session, with HDFC Bank and ICICI Bank gaining. ICICI Bank's net profit rose 15% YoY to Rs 12,768 crore, while HDFC Bank's net profit increased 12% YoY to Rs 18,155 crore. Bandhan Bank's net profit declined 65% YoY to Rs 372 crore, while RBL Bank's net profit dropped 46% YoY to Rs 200 crore.

Banking stocks traded mixed in the early session on Monday, July 2, 2025, with HDFC Bank and ICICI Bank gaining notable traction. ICICI Bank reported a 15% year-over-year (YoY) increase in net profit to Rs 12,768 crore, while HDFC Bank's net profit rose 12% YoY to Rs 18,155 crore [1]. However, Bandhan Bank's net profit declined by 65% YoY to Rs 372 crore, and RBL Bank's net profit dropped 46% YoY to Rs 200 crore [4].

ICICI Bank, India’s second-largest private lender, reported a standalone net profit of Rs 12,768.21 crore, up 15.5% YoY compared to the previous quarter [2]. The bank also saw a 10.6% increase in net interest income (NII) to Rs 21,635 crore. While the net interest margin (NIM) decreased slightly to 4.34%, the core operating profit grew by 13.6% to Rs 17,505 crore. The bank’s asset quality improved, with gross non-performing assets (GNPA) declining to 1.67% and net non-performing assets (NNPA) to 0.41% [2].

HDFC Bank reported a 12.24% YoY jump in standalone profit after tax (PAT) at Rs 18,155 crore, supported by strong deposit mobilization and an uptick in other income. However, the consolidated profit saw a slight dip of 1.31% YoY. Despite steady loan growth and robust deposit growth, the bank faced mild deterioration in asset quality, with GNPA and NNPA rising marginally. The net interest margin (NIM) also slipped to 3.35% from 3.6% YoY [1].

Anuj Gupta, Director at Ya Wealth Research & Advisory, recommended investing in both HDFC Bank and ICICI Bank due to their positive quarterly numbers. However, Sugandha Sachdeva, Founder of SS WealthStreet, suggested that ICICI Bank appears stronger in the short to medium term from a technical perspective. She noted that ICICI Bank's stock has formed a double bottom near Rs 1380 and a tweezer bottom at Rs 1410, validating key support near the lower Bollinger Band. Conversely, HDFC Bank seems to be facing resistance near Rs 2020-2030 levels [1].

Bandhan Bank's net profit declined by 65% YoY to Rs 372 crore, while RBL Bank's net profit dropped 46% YoY to Rs 200 crore. RBL Bank reported a 46% YoY decline in its standalone net profit for the first quarter ended June 2025, reaching Rs 200.33 crore. The drop was attributed to decreased interest income and increased operating expenses. NII fell by 13% YoY to Rs 1,481 crore, with NIM at 4.50% [4].

Investors are advised to carefully consider the implications of these results and seek professional advice before making any investment decisions.

References:
[1] https://www.livemint.com/market/stock-market-news/hdfc-bank-vs-icici-bank-which-stock-to-buy-post-q1-results-2025-11753067770600.html
[2] https://economictimes.indiatimes.com/markets/stocks/earnings/icici-bank-q1-results-net-profit-rises-15-5-yoy-rs-12768-crore-nii-up-11/articleshow/122780833.cms?from=mdr
[4] https://m.economictimes.com/markets/stocks/news/rbl-bank-shares-in-focus-as-q1fy26-net-profit-declines-46-yoy-should-you-buy/articleshow/122805622.cms