It is a crucial day for Indian banks today. Three private banks- HDFC Bank, Yes Bank, and ICICI Bank- are set to release their Q4FY26 on April 18.
While the banking stocks have seen a sharp correction, declining 5.6% in the past three months. Now all eyes are on the financial results of these key banks to see if they can improve the investor sentiment. Here is what analysts are anticipating.
Banking sector.Q4 preview- 13.5% credit growth expected: Motilal Oswal
Motilal Oswal expects India’s banking sector to report steady performance, supported by strong credit growth, stable margins, and controlled asset quality.
The analysts expect credit growth to remain healthy at around 13.5% in FY27, with public sector banks likely to benefit more from rising credit-deposit ratios. They also noted that support from the Reserve Bank of India through liquidity frameworks has also helped banks expand lending.
Net interest margins (NIMs) are expected to remain largely stable in Q4. The impact of the 25 basis points repo rate cut in December 2025 is likely to be reflected in lending yields, while funding costs remain elevated.
HDFC Bank Q4 preview
A Motilal Oswal report stated that HDFC Bank remains well-positioned to deliver steady profitability, supported by improving growth, stable margins, and strong asset quality.
“We expect RoA/RoE of ~1.9%/14.6% by FY27, with valuations supported by consistent execution and strong balance sheet fundamentals. It currently trades reasonably at 1.5x FY27E ABV, adjusting for subsidiaries,” the report said.
In Q3 FY26, HDFC Bank’s loan growth has shown gradual improvement, with advances growing about 12% YoY, while retail growth remained modest. The Bank’s management expects growth to remain broadly in line with the system, projecting a loan CAGR of about 13 percent over FY26-28.
The Bank’s NIMs expanded 8bp QoQ to 3.35 percent in 3QFY26. Further improvement is expected as funding costs decline and operating leverage benefits kick in through FY27E.
ICICI Bank Q4 preview
Motilal Oswal expects ICICI Bank to report flat NIM. “CRR benefits, TD repricing, lower interest reversals are offset by full repricing of repo cut,” Motilal Oswal noted.
Loan growth is expected to stay healthy at 4.5% quarter-on-quarter (QoQ), supported by business banking, a pickup in personal loans, and steady demand in the mortgage segment. Deposit growth is also likely to remain strong at around 5.2% QoQ.
Credit costs are expected to stay low at about 28 basis points, while overall asset quality should remain stable.
According to Motilal Oswal, ICICI Bank’s operating expenses are likely to remain flat sequentially, which may help reduce cost ratios slightly and keep return on assets (RoA) steady at around 2.3%.
Conclusion
You can track the HDFC Bank and ICICI Bank Q4 results live on Financialexpress.com. We will get you the top highlights and analysts views on the quarterly results.