Highest Upside

KBL reported a 12% PAT miss in 4Q at Rs2.5bn, due to lower margin (down by 4bps QoQ to ~3%) and higher staff costs owing to higher actuarial provisioning on retirement benefits of Rs1.1bn.

We expect moderate multiple expansion as the bank sustains mid-teen RoE, stable margins, and continued balance sheet strengthening.

We are enthused with RBL Bank’s (RBL) proposed transaction with Emirates NBD (ENBD) as it brings strong parentage to RBL, opens huge secular growth runway and solves frequent capital needs (pro forma CET 1 >35%).

Net Interest Income (NII) for Q1FY26 declined by 8.2% YoY (flat QoQ) to INR 27,572 Mn., below our estimates by 8.2%, mostly led by contraction in NIM margins. Non-interest income for Q1FY26 grew by 37.6% YoY (+3.8% QoQ) to INR 7,259 Mn., above our estimates, led by sharp increase in treasury gains.

For Q1FY26, the Net Interest Income (NII) grew by 10.1% YoY (+1.2% QoQ) to INR 429.6bn, above our estimates by 2.1%, led by higher NIM margins, partially offset by lower growth in advances.

Kotak Mahindra Bank (KMB) reported in-line Q2FY26 PAT of INR 32.5bn as muted other income (treasury loss) was offset by tight opex control. RoA stood strong at 1.9%.

We maintain our HOLD recommendation, given limited upside potential.

ICICIB saw a steady quarter as core PPoP was largely in-line; core PAT was a slight miss (3.4%) as provisions normalized to 56bps (avg. 35bps in previous 7 quarters). NIM adjusted for IT refund of Rs3.9bn was a tad better at 4.42% owing to slower repricing of EBLR loans to peers. Loan growth was softer at 1.7% QoQ due to pricing pressure and slower system growth. While we are factoring a loan CAGR of 14.5% over FY25-27E, the bank could deliver higher growth if retail credit growth picks up also led by PL/CC. Due to normalization...

We maintain our BUY recommendation on the stock.

Kotak Mahindra Bank (KMB) reported weak Q1FY26 PAT of INR 32.8bn (~6% miss), pulled down by ~32bps QoQ decline in NIM and rise in credit costs.

Consistent in delivering superior RoA of 2+% and RoE of 13+% Q2FY26 performance: Kotak Mahindra Bank delivered a steady Q2FY26 performance, marked by advances growth of 16% YoY (4% QoQ), led by strong traction in business banking and mortgages, while deposits rose 15% YoY (3.1% QoQ) with CASA at 42.3%., reflecting strong franchise momentum. NIM stood at 4.54% (11 bps QoQ) as the full impact of repo rate cuts and lower high-yield mix. Credit cost moderated to 79 bps (vs 93 bps in Q1) with improvement in MFI and credit card portfolios, while asset quality remained robust (GNPA/NNPA:...

ICICIB reported some moderation in credit growth at ~12% YoY in 1Q, mainly due to slower growth in retail loans (incl mortgages and unsecured loans) and demand remaining slack in the corporate portfolio.

Bank of Baroda reported a healthy performance in Q2 FY26, led by improved operating performance and pick-up in credit growth.

We recommend a BUY with a Target Price of Rs 2,525/share, implying a healthy 17% upside from CMP.

State Bank of India (SBI) reported yet another strong quarter with Q2FY26 PAT of INR 201.6bn, aided by the Yes Bank stake sale along with superior loan / core fee growth, NIM and comfortable asset quality.

ICICI Bank’s results epitomize the saying, “When the going gets tough, the tough get going.” Over the past few years, irrespective of the sectoral challenges such as unsecured asset quality issues, systemic growth moderation, liability accretion or NIM headwinds, the bank has been able to deliver a stellar performance, beating Street expectations.

Kotak Mahindra Bank (KMB) reported a standalone 2QFY26 PAT of ~INR32.5b (in-line with MOFSLe). Consol PAT stood at INR44.7b (down 11% YoY/flat QoQ).

We maintain our BUY recommendation on the stock.

We met Mr Subrat Mohanty, Executive Director and Mr Puneet Sharma, CFO of Axis Bank (Axis). The bank did not provide any guidance, though it acknowledges the healthy systemic liquidity; this, in conjunction with the hefty cumulative cut, should aid systemic loan growth, albeit with a lag.