Private sector banks saw a faster increase in deposits in the fourth quarter of FY24, despite moderating credit growth. ICICI Bank’s share price surged over 4% to a record high, crossing 8 lakh crore market capitalization, following strong Q4 results. Similarly, Axis Bank’s share price also hit an all-time high after announcing its Q4 earnings.
HDFC Bank, ICICI Bank, and Axis Bank all reported faster deposit growth in Q4FY24 compared to credit growth. Analysts expect these banks to continue performing well in the future, with HDFC Bank’s margins likely to remain under pressure.
ICICI Bank and Axis Bank saw a rise in share prices post-Q4 results, reflecting investor confidence in their long-term prospects. Despite moderated credit growth, these banks are expected to maintain their performance. ICICI Bank emerges as a strong pick based on its recent resilience and strategic approach.
HDFC Bank reported a net profit of ₹16,511 crore for the quarter, with net interest income rising to ₹29,007 crore. The bank ticked all boxes in Q4, delivering better-than-expected deposit growth and margin performance.
ICICI Bank reported a 17.4% rise in Q4 standalone net profit, with net interest income growing by 8%. The bank’s provisions halved in Q4, with improved asset quality. Emkay Global expects ICICI Bank to deliver higher returns over FY25-FY26.
Axis Bank reported a net profit of ₹7,130 crore, compared to a loss in the previous year. The bank’s net interest income rose by 11.5% YoY, with improved net interest margin. Emkay Global expects Axis Bank to maintain a healthy RoA over FY25-FY27.
Overall, analysts recommend ICICI Bank and Axis Bank as top banking stocks to buy after their Q4 results. The banks have shown strong performance and are expected to continue delivering in the future.