The Bank Nifty index advanced for the 5th straight session on Monday, propelled by strong buying in the bank stocks after strong second quarter business updates from HDFC Bank and Kotak Mahindra Bank.
All the 12 constituents of the bank Nifty were trading in the green as the Bank Nifty index extended its rise by rising 450 pts (0.8%) to reclaim the 56,000-mark, rising up to 3 percent during the period.
The key levels to watch are 55,000 on the downside and 56,000 on the upside, which are likely to dictate the next directional move in Bank Nifty, said Amruta Shinde, Technical & Derivative Analyst, Choice Broking.
Kotak Mahindra Bank rose 1.5%, the most on Bank Nifty, and HDFC Bank, the heaviest weighted stock on the Nifty 50 index, added 0.7%. The two reported loan disbursal growth of 15% and 10%, respectively, for the September quarter.
Kotak Mahindra Bank's CASA deposits grew 6.2% YoY in Q2. Citi analysts said the lender's net advances growth at 15.8% surpassed their estimates of 14.7%.
HDFC Bank's deposits aggregated to approximately Rs 27.1 lakh crore as of September 30, 2025, registering a growth of 15.1% over Rs 23.5 lakh crore recorded in September last year, it said.
The bank's average CASA deposits were Rs 8,770 billion for the September 2025 quarter, a growth of around 8.5 per cent from Rs 8,084 billion in September 2024 quarter, it added.
HDFC Bank's loan growth improved further to 10%, showing a reasonable improvement of 5% in 2 quarters, said Prakhar Sharma and Vinayak Agrawal, analysts at Jefferies.
HDFC Bank's gross advances growth demonstrates significant momentum and exceeded expectations, said Citi Research.
Shares of state-owned lender Bank of Baroda rose as much as 3.07% to Rs 272.05, a 15-month high, after upbeat Q2 update.
BoB is top gainer in public sector bank index, which is up 0.5%. Global business of BoB rose 10.47% year-on-year to Rs 27.79 lakh crore, as of September 30, 2025
Global advances and deposits jump 11.9% and 9.28% YoY to Rs 12.79 lakh crore and Rs 15 lakh crore, respectively
The growth trends in both loans and deposits improved in compared to the previous quarter, said Ankit Bihani, analyst at Nomura.
"The quarterly business updates from public sector banks and non-bank lenders have been strong, while private sector banks too were largely in line," Dharmesh Kant, head of equity research at Cholamandalam Securities told Reuters.
"Overall, this will keep the sentiments on the positive side going into the earnings season," Kant said.
With updates from Reuters
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