Banking Stocks Slide as Q4 Business Updates Weigh on Sentiment

Nine of the fourteen Nifty Bank stocks were trading in the red on Monday. The index dropped nearly 0.9% after lenders put out Q4 business updates over the weekend.

Kotak Mahindra Bank and IndusInd Bank took the hardest knock, each falling over 2%. Moreover, Over 1% gone at ICICI Bank, Punjab National Bank, and IDFC First Bank were trading at a loss of 1%.

HDFC Bank stood out in deposits. Period-end deposits at the lender jumped 14.4% YoY to Rs 31.05 lakh crore, ahead of what the Street had pencilled in. Average advances under management grew 10% YoY to Rs 29.64 lakh crore. Q3FY26 had a CD ratio of 99.5%. By Q4FY26, it had eased to 95.3%.

Gross advances at Axis Bank were up by 18.4% YoY to Rs 12.44 lakh crore. Its deposits climbed 13.9% YoY to Rs 13.35 lakh crore. Kotak’s net advances hit Rs 4.95 lakh crore, a 16.2% expansion driven by stronger unsecured lending.

Union Bank’s CD ratio widened to 82.5% in March 2026. That compares to 77.3% a year ago. Yes Bank’s Q4 loans grew 10.70% YoY to Rs 2.72 lakh crore, with its CD ratio dipping to 85.4% from 86.5%.

At IDFC First Bank, savings rate cuts of 50 to 200 basis points, combined with state government account outflows from a branch fraud incident, hit deposit accretion hard during the quarter.

Equirus Capital tracked overall advances and deposit growth across banks at 4.8% and 6.1% QoQ. Deposits kept outpacing credit at most large private banks through the period.

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