The shares of HDFC Bank, ICICI Bank, Yes Bank and IDFC Bank witnessed mixed reactions on Monday after these private lenders announced their Q2 results over the weekend. Among these, IDFC First Bank shares emerged as the top gainers, rallying nearly 5%, followed by Yes Bank shares, which gained 2.25%.

HDFC Bank share price rose over 1.7% to hit a 52-week high, while ICICI Bank share price declined as much as 2.57% after the release of Q2 results.

Here’s a look at how these banks have performed in the quarter ended September 2025:

HDFC Bank Q2 Results

The country’s largest private lender, HDFC Bank, reported a standalone net profit of ₹18,641.28 crore, up 10.8% YoY, while net interest income (NII) rose 4.8% YoY to ₹31,551.5 crore. Margins contracted by 10 bps, though asset quality improved sequentially. Loan growth stood at 4.5% QoQ and 10% YoY, aided by lower core credit cost due to a one-off upgrade.

ICICI Bank Q2 Results

ICICI Bank, India’s second largest private sector bank, posted a 5.2% YoY standalone net profit growth at ₹12,359 crore, while NII grew 7.4% YoY to ₹21,529 crore. NIM stood at 4.30% and asset quality bank improved sequentially.

IDFC First Bank Q2 Results

IDFC First Bank reported a 75.5% YoY jump in net profit to ₹352.3 crore, with NII rising 6.78% YoY to ₹5,113 crore. Margin saw limited compression at 4 bps QoQ to 4.3% and asset quality remained healthy.

Yes Bank Q2 Results

Yes Bank’s net profit increased 18.4% YoY to ₹655 crore and NII was up 4.6% YoY at ₹2,300 crore. While provisions during the September quarter increased, asset quality remained stable.

Which bank stock to buy after Q2 results?

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said that based on a combination of growth and fundamentals in Q2FY26, IDFC First Bank emerged as the performer, while HDFC Bank retained its position as the benchmark for stability at scale. Both banks, he said, demonstrated solid performance across growth momentum, margin expansion, asset quality, and execution discipline.

“From a valuation standpoint, HDFC Bank appears reasonably priced, supported by its strong franchise, resilient balance sheet, and consistent performance within the large-cap private banking universe. Its Q2 earnings beat reinforces confidence in its deposit and lending franchise as well as non-interest income growth, a notable achievement in a tight interest-rate environment,” said Tapse.

Meanwhile, he believes Yes Bank remains a high-risk, high-reward turnaround play.

“For long-term investors with a higher risk appetite, Yes Bank presents a contrarian opportunity, contingent on management’s ability to sustain asset-quality improvement, expand margins, and deliver on its digital and retail-lending roadmap,” Tapse said.

Anand Dama, Senior Analyst at Emkay Global, expects HDFC Bank to outpace system growth in FY27E, while ICICI Bank is well-placed to deliver 2.1% – 2.3% RoA over FY26–28E, supported by cost management, fee growth, and contained credit costs.

Emkay retained a Buy rating on both HDFC Bank (target price revised upward by 7% to ₹1,225) and ICICI Bank (unchanged TP: ₹1,700). For IDFC First Bank, the brokerage maintained an Add rating with a target price of ₹80, noting near-term margin pressure but a likely recovery from H2FY26.

For Yes Bank, Emkay reiterated a Sell rating despite raising the target price by 12% to ₹19, citing weak return metrics and elevated provisions.

Banking Sector Outlook

When banks perform well, it often reflects that the broader economy is in an optimistic and expansionary phase.

“Strong credit growth, rising deposits, and improving asset quality usually indicate higher consumer and business confidence, making the overall outlook bullish for markets,” Tapse said.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.