HDFC Bank, SBI, City Union Bank — Nirmal Bang Top Stock Picks In Banks, Specialised NBFCs; Q1 Results Preview

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

As per the analysis of the provisional business updates shared by lenders, some of the key trends which were visible during Q1 FY26 include:

1. Credit growth has moderated (mainly on account of stress build up in unsecured loans and RBI’s increased regulatory oversight in the recent past),

2. Deposit growth also remains a challenge with the deposits growth of 10.4% YoY mainly coming from term deposits,

3. Private banks have seen better deposit growth and PSBs have seen credit growth outpace deposit growth,

4. CASA deposit mobilization in the banking system remained under pressure,

5. Banks, which have reported provisional numbers, have seen a decline of 198bps YoY/22bps QoQ in C/D ratio,

6. Asset quality trends remain stable for large lenders; however, unsecured retail (MFI) continues to witness elevated stress levels.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.