Private bank stocks surged up to 4.5% on Tuesday, October 6, as investors reacted to a healthy business performance snapshot for the July‑September quarter (Q2) of the financial year 2026‑27. Kotak Mahindra Bank, Axis Bank, IndusInd Bank, HDFC Bank, Bandhan Bank and others jumped after the opening bell, buoyed by strong credit growth and FCNR support ahead of the Q2 earnings report scheduled later this month. The Nifty Private Bank index rose 1.17% to an intraday high of 27,033.15 points, up from 26,718.15 at the previous close.

The Nifty Bank index also gained 0.65% to an early market high of 55,074.45 points on October 6, compared with 54,714.10 at the prior close, reflecting investors’ confidence in the banking sector’s growth potential. Analysts highlighted that deposit growth and overall loan book advancement are expected to power upcoming earnings, with cyclical headwinds largely behind. Investors are also watching the Reserve Bank of India’s forthcoming monetary policy decision amid rising US treasury yields and elevated crude oil prices.

Kotak Mahindra Bank’s net advances surged 24.7% YoY to ₹5,77,094 crore, while CASA deposits rose 11.3% YoY to ₹2,49,105 crore. Total deposits climbed 23.2% YoY to ₹6,51,491 crore, and FCNR(B) deposits aggregated to $5.78 billion or ₹55,344 crore due to RBI’s swap facility. Citibank analysts noted a marked step‑up in balance sheet momentum, and Goldman Sachs expects Q2 earnings to be stronger‑than‑expected driven by FCNR flow mobilisation and organic loan growth.

IndusInd Bank reported net advances of ₹3,62,393 crore, up 11.2% YoY, and deposits of ₹4,29,038 crore, up 10.1% YoY. The bank’s CASA ratio stood at 30.7% in the September quarter. FCNR(B) deposits mobilised amounted to $3.51 billion (₹33,627 crore). Goldman Sachs analysts anticipate loan growth to pick up, with the institution entering a multi‑year recovery phase and asset quality stress largely behind.

Axis Bank’s gross advances rose 22.7% YoY to ₹13,84,600 crore, and total deposits increased 20.7% YoY to ₹14,52,100 crore. The bank mobilised FCNR(B) deposits of around $10.62 billion (₹1,01,800 crore) as of September 30, 2026. Goldman Sachs predicts that cyclical headwinds are now largely behind and that underlying margins should recover from FY28 onwards due to a favourable mix shift towards retail and SME segments.

HDFC Bank disclosed average deposits of ₹31,66,500 crore for the September 2026 quarter, a growth of 16.8% over ₹27,10,500 crore a year earlier, and period‑end deposits of ₹33,27,500 crore, up 18.8% over ₹28,01,800 crore. The bank mobilised FCNR(B) deposits of around $11.5 billion (₹11,03,400 crore) through RBI’s swap facility. Bernstein analysts expect stability in top management and no major kitchen‑sinking exercise in upcoming quarters, potentially easing governance concerns.