“Deposits are witnessing strong interest from NRI customers and could emerge as a meaningful source of deposit growth and liquidity for the bank,” Chaudhry said.
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Axis Bank reported a better-than-expected June quarter, with net profit rising 22.5 per cent year-on-year to ₹7,114 crore. The growth was aided by a sharp 44 per cent decline in provisions to ₹2,223 crore, while net interest income (NII) rose 8 per cent to ₹14,646 crore on the back of healthy loan growth across corporate, SME and retail segments. The bank maintained stable asset quality and retained its ₹2,001 crore precautionary provision for West Asia-related risks.“We continue to deliver quality growth while strengthening our balance sheet and maintaining a disciplined risk framework. We believe the June quarter marks the cycle bottom for margins,” said Amitabh Chaudhry, MD & CEO, Axis Bank.Kotak Mahindra Bank too reported a 26 per cent increase in net profit to ₹4,123 crore, its strongest earnings growth in two years. A 45 per cent decline in provisions to ₹668 crore supported profitability, while NII grew 9.2 per cent to ₹7,928 crore. Deposits rose 11.7 per cent and advances grew 15 per cent, led by corporate and SME lending. Asset quality remained stable, with gross NPA improving to 1.38 per cent and net NPA at 0.27 per cent.“In the current environment, we have prioritised stability, profitability and efficiency without any compromise to our overarching strategy around the four focus customer segments,” said Ashok Vaswani, Managing Director & CEO, Kotak Mahindra Bank. “We have calibrated growth in the low-ROE businesses and businesses potentially affected by the geopolitical crisis. At the same time, we have taken advantage of better spreads in the corporate segment and volatility in the treasury markets,” he added.On the other hand, IDBI Bank posted a 5.4 per cent rise in net profit to ₹2,115 crore, aided by strong recoveries from stressed and written-off accounts. Net recovery and write-backs surged to ₹637 crore from ₹179 crore a year earlier. NII increased 10.1 per cent to ₹3,486 crore, while advances grew 22.2 per cent and deposits rose 9.8 per cent. Net NPA improved to 0.16 per cent despite a decline in non-interest income and a marginal compression in margins.YES Bank, in contrast, saw profit growth driven by improving core operating performance rather than lower provisioning. Net profit rose 34 per cent to ₹1,071 crore, supported by a 17.5 per cent increase in NII to ₹2,786 crore. Advances grew 18.3 per cent to ₹2.85 lakh crore and deposits rose 14.3 per cent to ₹3.15 lakh crore, while gross NPA improved to 1.3 per cent.“Our net profit grew even as some of our non-core income streams moderated, a clear sign that our core recurring earnings engine is increasingly driving performance,” said Vinay Tonse, Managing Director & CEO, YES Bank. “Margins remained steady at 2.7 per cent, the cost-to-income ratio improved further, and asset quality strengthened as slippages moderated,” he added.On FCNR(B) deposits, private sector banks reported encouraging interest from NRIs but refrained from providing estimates before September-end. “Deposits are witnessing strong interest from NRI customers and could emerge as a meaningful source of deposit growth and liquidity for the bank,” Chaudhry said.Published on July 18, 2026
