Personal lending agencies are disappointed in Q4FY25, but small and PSU banks are impressive. HDFC BANK, SBI among 16 stocks

India’s banking divisions provided mixed results in Q4FY25, and profit growth was rapidly branched by private, public and small financial banks. Heavyweight athletes such as HDFC Bank and ICICI BANK have been humble in healthy growth, while State Bank of India (SBI), KOTAK Mahindra Bank and AXIS Bank have reported disappointing numbers. In addition, small and medium -sized banks surprised the streets with explosive profits.

Private banks attracted the overall profitability of bank packs, reducing net profit of Q4FY25 compared to the previous year. MOTILAL OSWAL Financial Services explained that this branch, which attended the review, had a “mix” result.

Among major banks, ICICI banks recorded 18% combustion growth since PAT, while net income income (NII) increased 11%. HDFC banks’ conclusions increased 7% and NII rose 10%.

AXIS BANK, SBI and KOTAK BANK reported a decrease between 0.17% to 14% in the quarterly quarter. On the other hand, INDUSIND BANK reported the integrated net loss of 2,329 crosses in Q4FY25 compared to the net profit of RS 2,349 crore compared to the previous year due to the loss of derivatives and fraud. NIIs in private loan institutions also decreased 43%.

Top Dog: A small bank steals the show

Dhanlaxmi Bank led the pack with a 776% increase in YOY due to an increase of 776% of the PAT due to an increase of 28% of NII. Next was Bandhan Bank, with NII decreased by 4% but reported 482% PAT growth. Punjab & Sind Bank (PSB), Bank of India (Boi) and Punjab National Bank (PNB) provided a strong increase in imports of 124%, 82%and 52%, respectively.

Among the small finance banks (SFBS), AU Small Finance Bank noticed 57% of NII growth, reflecting 36% PAT and strong operating momentum.

YES BANK, one of the widely tracked lending institutions, reported a strong 63% PAT growth with a 6% NII jump.

PSU Bank Q4 Main takeout

Some public sector banks have reported strong means growth despite humble NII profits. Canara Bank’s PAT increased 33%, but NII decreased 1.4%. UNION BANK, Indian Bank and Indian Overseas Banks (IOB) reported net profit growth of 51%, 32%and 30%, and NII increased 1%, 6%and 13%, respectively.

Some small financial banks, including Equitas (-80%), Ujjivan (-75%), RBL (-81%) and ESAF (-522.6%), had difficulty.

Etmarkets analyzed the income and CY25 returns from 41 companies in the banking sector.

MOTILAL OSWAL said that most large private banks have improved the net interest margin (NIMS) sequentially during the adjustment of low days in 4Q, and the public bank continued to mediate in NIMS but corrected at a low single position.

CY25 is returned

In terms of return, 19 stocks earned up to 35%of the previous year. The highest profits are RBL BANK, IDBI BANK and Ujjivan Small Finance Bank, which earned 35%, 32%and 32%, respectively.

Among the widely tracked lending institutions with two -digit revenue, YES BANK, Canara Bank, ICICI BANK and AXIS BANK increased 19%, 17%, 13%, and 12%.

Rigidity such as HDFC BANK, SBI, PNB and BOB gave revenue between 9% and 2%.

Laggards include PSB, UTKARSH SFB, Central Bank, Fino Payments, ESAF SFB, UCO BANK, IOB, Indusind Bank and Karnataka Bank.

Sector

India’s central banks are reduced by 25%.

Brokerage BNP Paribas Credit Growth Revival is converted into imported momentum. “Our prognosis for large -scale banks is the expansion of 2HFY26 or at least stability after the shallow floor of 1HFY26. Therefore, we expect that reasonable credit growth will be shifted to simultaneous income growth momentum for FY26 banks.

RAKESH VYAS, co -investor and portfolio manager of Quest Investment Advisors, is seeing RBI’s measures to strengthen system liquidity to support FY26’s continuous credit growth. As a result, despite potential margin compression, the banking sector is likely to achieve double -digit growth in FY26, and asset quality is stable and there will be no signs of worsening so far.

Stock

– HDFC Bank | MOFSL/AXIS Securities | Target: Max RS 2,250

Religious broking received a ‘accumulation’ rating of stocks on the price goals of RS 2,077.

– Buy ICICI BANK | Nuvama/MOTILAL OSWAL | Target: Maximum RS 1,650 | Upward: 14%

– Bank box purchase | MOFSL | Target: Maximum RS 2,500 | Upward: 21%

NUVAMA has a ‘HOLD’ rating, and Elaracapital has a ‘accumulation’ rating.

– Buy AXIS BANK | Nomura/Investec/Nuvama | Target: 1,450 RS | Upward: 21%

– Buy SBI | Nuvama/MOFSL/JM Financial | Target: Max RS 960 | Rising: 18%

ELARA has received a ‘accumulation’ rating for SBI stocks.

– Purchase rice | Livestock Securities | Target: RS 280

-Promite the RBL bank | Geojit Investment/MOFSL | Target: RS 240

-Ujjivan SFB | Central Broking | Target: RS 57

-Prelinition IDFC first bank | Central Broking | Target: RS 59

MOTILAL has a purchase view for AU SFB, DCB Bank, Equitas Small Finance Bank and Federal Bank. Among the PSU banks, there are purchase views for Canara Bank, Indian Bank, PNB and Union Bank.

(disclaimer: Recommendations, suggestions, views and opinions provided by experts are itself. They do not indicate the views of the economic age)