Private banks go for a tumble on D-St after Q1 stumble

Most private sector banks including HDFC Bank, Axis Bank and Kotak Mahindra Bank reported softer net interest margins and lower net interest income growth in Q1FY26, while ICICI Bank stood out with 16 percent year-on-year profit growth that beat expectations. The broader sector faced about Rs 91,000 crore in market value erosion, with margin compression being priced in by investors, though analysts expect NIMs to expand as deposits are repriced and FCNR inflows rise. Foreign investors turned net buyers of financials in the second half of June at Rs 14,634 crore after pulling out Rs 114,826 crore between January and May, while Macquarie retained Outperform on ICICI, HDFC and Axis Bank but stayed Neutral on Kotak.