Bank Q2 FY27 Results: ICICI +20%, Axis +38%, HDFC +5% on Oct 17
India's three largest private-sector lenders — HDFC Bank, ICICI Bank and Axis Bank — all announced their September-quarter (Q2 FY27) results on Saturday, 17 October 2026, making it a bumper earnings weekend for banking stocks. ICICI Bank and Axis Bank posted double-digit profit jumps on strong loan growth and falling provisions, while HDFC Bank grew profit a modest 4.7% as weak treasury gains and shrinking margins bit. All three lenders saw their net interest margins compress, partly because of the flood of foreign-currency deposits under the RBI's FCNR(B) swap window.
Q2 FY27 results at a glance (standalone)
| Parameter | HDFC Bank | ICICI Bank | Axis Bank |
|---|---|---|---|
| Net profit (₹ crore) | ₹19,510 | ₹14,843 | ₹7,003 |
| Profit growth (YoY) | +4.7% | +20.1% | +37.6% |
| NII (₹ crore) | ₹34,619 | ₹25,339 | ₹15,371 |
| NII growth (YoY) | +9.7% | +17.7% | +11.8% |
| Net interest margin | 3.32%* | 4.18% | 3.36% |
| Gross NPA | 1.11% | 1.20% | 1.16% |
| Net NPA | 0.37% | 0.30% | 0.35% |
| Provisions (₹ crore) | ₹3,574 | ₹851 | ₹1,694 |
| CET-1 ratio | 17.1% | 16.01% | 14.61% |
*HDFC Bank NIM is 3.32% on interest-earning assets and 3.16% on total assets. Source: bank filings via NDTV Profit, CNBC-TV18, Economic Times.
ICICI Bank: strong loan growth, leanest provisions
ICICI Bank stood out for the quarter. Standalone net profit rose 20.1% YoY to ₹14,843 crore, while consolidated profit jumped 22% to ₹16,333 crore, beating street estimates. NII grew 17.7% to ₹25,339 crore on strong loan growth. The bank's NIM eased to 4.18% from 4.36% in the June quarter and 4.30% a year ago, but it remained the highest of the three. Asset quality improved sharply — gross NPA fell to 1.20% from 1.38% sequentially and net NPA to 0.30% from 0.35%. ICICI also set aside the least money for bad loans, with provisions of just ₹851 crore.
Axis Bank: 38% profit jump as provisions halve
Axis Bank posted the fastest profit growth of the three — standalone net profit up 37.6% YoY to ₹7,003 crore (consolidated ₹7,704.67 crore, +39.4%). The jump was driven by provisions and contingencies falling to ₹1,694 crore from ₹3,547 crore in the year-ago quarter, along with improving asset quality — gross NPA slipped to 1.16% from 1.28% and net NPA to 0.35% from 0.39%. NII rose 12% to ₹15,371 crore. The bank took the sharpest margin hit: NIM fell to 3.36% from 3.73% a year ago, and management said the FCNR deposits alone shaved 11 basis points off the margin — excluding them, NIM would have been 3.47%.
HDFC Bank: modest 5% growth, treasury gains fall
India's largest private lender reported the quietest quarter. Standalone net profit rose 4.7% YoY to ₹19,510 crore, slightly below the CNBC-TV18 poll estimate of ₹19,727 crore. NII grew 9.7% to ₹34,619 crore, while NIM slipped to 3.32% on interest-earning assets (3.16% on total assets) from 3.26% in Q1. The key drag: treasury trading gains fell to ₹780 crore from ₹2,390 crore in the year-ago quarter. On the positive side, asset quality was the best of the three — gross NPA at 1.11% (from 1.17% in Q1) and net NPA at 0.37% (from 0.41%). Gross advances grew 16.3% and deposits 18.8%. The results also come just ahead of a CEO change — Anup Bagchi takes over on 27 October.
Why margins compressed: the FCNR(B) swap effect
All three banks saw margins compress year-on-year, and analysts point to one shared reason: the RBI's record FCNR(B) dollar-swap window (June–August 2026) flooded banks with foreign-currency deposits. These deposits swell the deposit base but add to interest cost without a matching loan book, squeezing NIMs. ICICI Bank's deposits jumped 27.1% on this effect (17% excluding it), while its loans grew 30% (24.1% excluding it). Axis Bank's advances surged 23% and deposits 21% after factoring in the window, versus 19.1% and 17% without it.
Read our earlier pieces on how RBI policy is moving your money: RBI Hikes Repo Rate to 5.50% and FD Rates After RBI Hike: Highest Bank FD Rates, Oct 2026. For a full profile of HDFC Bank, see HDFC Bank Financial Breakdown.
Other banks that reported on Oct 17
- Central Bank of India — net profit up 21.1% to ₹1,469 crore; NII up 26.3% to ₹4,145 crore; gross NPA down to 2.39%; NIM at 3.01%.
- IDBI Bank — net profit fell ~39% on a high year-ago base linked to one-time gains and privatisation-related effects, despite stronger underlying performance.
- Yes Bank — reported separately with a profit surge, though an SC ruling on AT-1 bonds could flip its Q2 profit into a potential ₹5,217 crore loss, per reports.
FAQs
Which of the three big banks grew profit the fastest in Q2 FY27?
Axis Bank, with standalone net profit up 37.6% YoY to ₹7,003 crore, driven by halved provisions and improving asset quality. ICICI Bank grew 20.1% and HDFC Bank 4.7%.
Why did bank margins fall in Q2 FY27?
Largely because of the RBI's FCNR(B) swap window — the record inflow of foreign-currency deposits boosted deposit bases but raised funding costs, compressing net interest margins at all three banks. Axis Bank said FCNR deposits alone cost it 11 bps of NIM.
Which bank had the best asset quality?
HDFC Bank, with the lowest gross NPA ratio of 1.11% (net NPA 0.37%), followed by Axis Bank (1.16%) and ICICI Bank (1.20%).
Why was HDFC Bank's profit growth so modest?
Two main reasons: treasury trading gains collapsed to ₹780 crore from ₹2,390 crore a year ago, and net interest margins compressed. Loan and deposit growth remained healthy at 16.3% and 18.8%.
Did the results beat street estimates?
Mixed. ICICI Bank beat the CNBC-TV18 poll, while HDFC Bank (₹19,510 cr vs ₹19,727 cr estimate) and Axis Bank (₹7,003 cr vs ₹7,132 cr estimate) came in marginally below.
Conclusion
Bank Q2 FY27 was a story of two speeds: ICICI Bank and Axis Bank delivered strong double-digit profit growth on healthy credit demand and improving asset quality, while HDFC Bank's modest 5% rise reflected weaker treasury income and margin pressure. The shared thread — NIM compression from the FCNR deposit deluge — should fade as the swap window matures, making Q3 margins the key number to watch next. Bank stocks trade Monday on these results.
Disclaimer: Figures are from the banks' exchange filings and reported by NDTV Profit, CNBC-TV18, Economic Times and Mint. This article is for information only and is not investment advice.