India Large Banks: 1QFY27 results review: Not so downbeat

Research evidence excerpt

India Large Banks: 1QFY27 results review: Not so downbeat

20 July 2026

India Large Banks EquitiesCommercial Banks

1QFY27 results review: Not so downbeat India

◆ Four large private banks – HDFCB, ICICIBC, AXSB and KMB – Abhishek Murarka*

reported their 1QFY27 results on 18 July 2026 SeniorHSBC SecuritiesAnalyst, andIndiaCapitalFinancialsMarkets (India) Private Limited

abhishek.murarka@hsbc.co.in

◆ Although there were some negative surprises, we remain +91 73049 07567

constructive on large banks’ medium-term potential Rahil Shah*

Analyst, India Financials

HSBC Securities and Capital Markets (India) Private Limited

◆ We downgrade KMB to Hold (from Buy) while we maintain rahil.shah@hsbc.co.in

our preference for ICICIBC, HDFCB and AXSB (all Buy) +91 22 6628 3719

Yash Taparia*

Overall view after the results: Despite the negative surprises in 1QFY27, we remain HSBC Securities and Capital Markets (India) Private Limited yash.taparia@hsbc.co.in

constructive on large Indian private banks (PVB). This is because loan growth remains +91 080 6737 2394

high and there is potential for earnings upgrades. In addition to the loan growth and

credit cost levers, there has been a sharp reduction in cost/assets too, an additional * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

ROA driver. Going ahead, if money market rates in India subside (which could be led

by any event such as FCNR(B) flows, de-escalation of the Middle East conflict, better

monsoons, etc) the bulk of corporate credit demand will likely get redirected to bonds,

leading to a loan mix shift towards retail loans. While this may moderate the loan

growth outlook somewhat, it would lead to NIM / NII upgrades, cancelling any material