India’s three largest private-sector lenders delivered a mixed performance in the September quarter of FY27, with ICICI Bank reporting strong earnings growth, HDFC Bank navigating margin pressures and a leadership transition, and Axis Bank posting a sharp rise in profit alongside improving asset quality.
Brokerages remain positive on all three stocks, with Nuvama Institutional Equities retaining a ‘Buy’ rating on each. However, differences in credit growth, profitability and margin trends could influence investors’ choices.
ICICI Bank reported a 20.1% year-on-year rise in standalone net profit to ₹14,843 crore in Q2 FY27. Net interest income (NII) increased 17.7% to ₹25,339 crore, supported by strong loan growth, while net interest margin (NIM) declined 12 basis points sequentially to 4.18%.
Nuvama Institutional Equities retained its ‘Buy’ rating on ICICI Bank with a target price of ₹1,850. The brokerage highlighted credit growth of 30% year-on-year and 12% quarter-on-quarter, which remained strong even after excluding foreign currency non-resident (FCNR) deposits. Lower operating expenses and provisions helped the bank deliver a 7% profit beat against Nuvama’s estimates.
Nuvama expects strong growth to continue, with margins recovering from Q3 FY27. It sees ICICI Bank delivering return on assets (RoA) of 2.2–2.3% and return on equity (RoE) of around 17% over FY27–FY29, making it the brokerage’s preferred pick among large private sector banks.