Media365
India’s leading private-sector banks are expected to outperform their state-owned counterparts in the April-June quarter of FY27, supported by stronger net interest margins, a healthier loan and deposit mix, and resilient earnings growth, according to an analysis by S&P Global Market Intelligence.
The analysis projects that HDFC Bank, India’s largest private-sector lender, will surpass State Bank of India (SBI) in quarterly net profit for the first quarter of FY27.
According to consensus analyst estimates on the Visible Alpha platform, part of S&P Global Market Intelligence, HDFC Bank’s net profit is expected to rise 4 per cent year-on-year to Rs 188.8 billion in the quarter ended June. In comparison, SBI’s profit is estimated to decline 3.4 per cent to Rs 185.1 billion.
Among the country’s largest lenders, Axis Bank is expected to report the strongest earnings growth, with net profit projected to increase 24.7 per cent year-on-year to Rs 72.42 billion during the quarter.
The analysis also points to continued strength in profitability metrics for private lenders. SBI’s net interest margin (NIM) is expected to improve marginally by 2 basis points to 2.66 per cent, while Axis Bank’s NIM is likely to remain steady at 3.55 per cent. HDFC Bank’s NIM, however, is projected to ease by 10 basis points to 3.29 per cent, though it is expected to remain comfortably above SBI’s level.
S&P Global Market Intelligence said India’s large private-sector banks are likely to deliver stronger earnings growth than state-owned peers, driven by a superior funding profile, healthier deposit mix and better-quality loan portfolios.
