Top banking share to buy after Q2 results 2026? HDFC Bank vs Axis Bank vs ICICI Bank vs Yes Bank vs IDBI Bank - Details
Top banking share to buy: Amid ongoing earnings season, private sector banks like HDFC Bank, ICICI Bank, Axis Bank, Yes Bank and IDBI Bank have already released their financial results for the quarter ending on 30 September, 2026.
While market analysts remain bullish on banking stocks, they have identified the companies best positioned to perform following their Q2 results for 2026.
HDFC Bank posted a 4.6% year-on-year increase in net profit to ₹19,510 crore in the second quarter of FY27, compared with ₹18,641 crore in the corresponding quarter of the previous financial year.
The bank’s net interest income (NII), calculated as the difference between interest earned and interest expended, grew 9.7% year-on-year to ₹34,620 crore for the quarter ended September 30, 2026, from ₹31,550 crore a year earlier. Its net interest margin (NIM) stood at 3.16% on total assets and 3.32% on interest-earning assets.
According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, HDFC Bank showcases outstanding cost management with an industry-best cost-to-income ratio of 39.1%, strong credit quality (GNPA of 1.11%), and an impressive Capital Adequacy Ratio (CAR) of 18.9%.
Axis Bank posted a 37.6% year-on-year rise in net profit to ₹7,003.3 crore in Q2 FY27. Its net interest income (NII) grew 11.8% to ₹15,371.4 crore, surpassing the estimated ₹14,970 crore.
The bank reported a net interest margin (NIM) of 3.36%, which stood at 3.47% after excluding the impact of FCNR-B deposits. Asset quality also improved, with the gross non-performing asset (NPA) ratio declining to 1.16% from 1.46% a year ago. The net NPA ratio eased to 0.35% from 0.44% over the same period.
“Axis Bank also displayed stable execution with 23% YoY advance growth, controlled credit costs, and an improved GNPA ratio of 1.16%, though its lower CASA ratio (36%) and moderate NIM (3.36%) place it slightly behind ICICI and HDFC Bank,” said Srivastava.
ICICI Bank posted a 20.1% year-on-year increase in standalone net profit to ₹14,843 crore in Q2 FY27. Its net interest income (NII) grew 17.7% to ₹25,339 crore, driven by robust loan growth. However, the bank’s net interest margin (NIM) contracted by 12 basis points sequentially to 4.18%.
Srivastava added that ICICI Bank leads on core operational strength, delivering a sector-leading Net Interest Margin (NIM) of 4.18%, credit costs at an annualized 0.3%, a healthy CASA base (35.8%), and robust loan growth of 30% YoY.
YES Bank's Net Interest Income (NII) increased 22.7% year-on-year to ₹2,822.5 crore, compared with ₹2,301 crore in the corresponding quarter last year.
The bank reported a net profit of ₹1,080 crore, marking a 65% increase from the year-ago period.
Net interest margin (NIM) improved to 2.6% from 2.5% in the September quarter last year, but declined from 2.7% in the June quarter. YES Bank's cost of funds stood at 5.7%, while its cost of deposits was 5.5%.
“YES Bank, despite delivering steady operational expansion (NII up 22.7% YoY) and low credit costs, carries significant overhang due to the Supreme Court ruling upholding the ₹8,415 crore AT-1 bond write-down, which presents unbooked regulatory and financial liability risks,” she said.
IDBI Bank reported a 39.2% year-on-year drop in net profit to ₹2,206 crore in the second quarter of FY27, compared with ₹3,627 crore in the same period last year. Despite the decline in profitability, the lender's net interest income (NII) rose nearly 29%, while its net interest margin (NIM) improved significantly. The bank also reported an improvement in asset quality during the quarter.
Srivastava believes that for long-term investors seeking capital stability and steady compounding, ICICI Bank and HDFC Bank remain top-tier holdings due to their balance sheet strength, pristine asset quality, and diversified earning streams across subsidiaries.
She further added that Axis Bank serves as a solid core banking hold for balanced risk-reward growth. IDBI Bank appeals primarily to tactical investors eyeing privatization catalysts, while fresh positions in YES Bank should be approached with caution or avoided until full clarity emerges regarding the financial impact of the AT-1 bond judgment.
Meanwhile, Sugandha Sachdeva, Founder of SS WealthStreet, while picking ICICI Bank as top stock to buy, said that the bank has delivered an encouraging performance in Q2 FY27, reinforcing its strong underlying fundamentals and positive medium- to long-term growth outlook.
“From a technical perspective, ICICI Bank is exhibiting an increasingly constructive structure on the charts, having staged a notable recovery from the ₹1,290 region at the beginning of October, with gains of around 4.8% during the month. The stock is sustaining above its key moving averages, while improving trading volumes suggest strengthening buying interest and accumulation at lower levels,” Sachdeva said.
She highlighted that a close analysis suggests that the stock has been consolidating within a broad range of around ₹1,200- ₹1,482 since July 2024, indicating a prolonged phase of consolidation. Such an extended base formation can provide the foundation for a meaningful directional move once the upper boundary of the range is decisively breached.
“On the upside, ₹1,480- ₹1,482 remains the crucial resistance zone to monitor. A decisive breakout above this hurdle, preferably supported by expanding volumes and a sustained monthly close, would signal an exit from the prolonged consolidation phase and could trigger a fresh leg of the rally. Such a move could pave the way for an advance towards ₹1,620 initially, followed by ₹1,680 from a long-term perspective,” she said.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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HomeMarketsStock MarketsTop banking share to buy after Q2 results 2026? HDFC Bank vs Axis Bank vs ICICI Bank vs Yes Bank vs IDBI Bank - Details
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