Private vs PSU banks face off: SBI, PNB, Union vs HDFC, ICICI, Axis, AU - Which pack could outperform in Q2 2026 results
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Private and PSU banks face off as the Q2 2026 earnings season begins.
- ✓Experts expect private banks to see 24% annual profit growth, while PSU banks may see 17%.
- ✓Motilal Oswal said, “We estimate PSU banks’ PAT to grow 27% YoY in 2QFY27.” Many analysts now track these top banking picks.
Story at a Glance
- Category
- MARKET
- Reported By
- Livemint
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
The corporate earnings season has begun and experts are bullish on banking sector, with some expecting robust business growth led by FCNR (B) inflows, improvement in net interest margins (NIMs) and profit. Private Sector Banks (PSBs) are likely to report resilient margins, but private players are expected to see adverse impact to NIMs, according to Motilal Oswal Financial Services which keeps ICICI, State Bank of India, Kotak Mahindra Bank, and AU Bank among its top picks.
HDFC Bank is likely to see strong deposit growth aided by FCNR (B) deposits. NIMs are likely to improve marginally for Punjab National Bank (PNB). Union Bank of India may see modest increase in its credit cost and some improvement in asset quality. However, Axis Bank may see marginal decline in credit costs amid a reduction in technical slippage.
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