PSU bank stocks soar up to 8%, but HDFC, Axis and other private lenders fall up to 5% after Q2 results. Why the sharp divide?
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓PSU bank stocks surged up to 8% on Monday, while private lenders fell up to 5% after Q2 results.
- ✓Punjab National Bank led the gains with an 8% rise after its profit beat estimates.
- ✓Meanwhile, Axis Bank and HDFC Bank shares dropped as their earnings failed to impress many investors.
Story at a Glance
- Category
- MARKET
- Reported By
- The Economic Times
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
Shares of public sector banks surged up to 8% on Monday, buoyed by Punjab National Bank’s strong Q2 results. In contrast, private sector lenders fell up to 5% as earnings from HDFC Bank, Axis Bank, ICICI Bank and others failed to impress investors.
The Nifty PSU Bank index rose more than 2%, while the Nifty Private Bank index fell over 1%. The Nifty Bank index, meanwhile, traded marginally lower amid subdued market sentiment.
PSU bank stocks rally
Punjab National Bank (PNB) led gains among the PSU lenders, with its shares soaring 8% as brokerages hiked target prices after the bank’s Q2 earnings beat estimates. The lender on Friday reported a 13% year-on-year increase in standalone net profit to Rs 5,532 crore for the July-September quarter of the ongoing financial year 2027. Its net interest income (NII), which is the difference between interest earned and interest expended, rose around 11% YoY to Rs 11,601 crore in Q2 FY27, from Rs 10,469 crore in the year-ago period. Asset quality also improved.
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The Economic Times
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