Rs 91,000 crore wipeout: What spooked HDFC Bank, Axis Bank and Kotak investors even as credit growth picked up?

HDFC Bank, Axis Bank and Kotak Mahindra Bank collectively lost about Rs 90,800 crore in market value on Monday, with shares falling 4.56%, 5.6% and 3% respectively, as Q1 results disappointed on profitability despite strong loan growth. Net interest margins compressed sequentially for large private banks as corporate loans grew faster than retail and CASA ratios fell to record lows, with HDFC Bank's NIM dropping 12 basis points to 3.26%. Investec downgraded HDFC Bank to hold with a target of Rs 920, citing weak margins, declining returns and lingering uncertainty over the MD and CEO succession.