Analysts attribute Yes Bank’s weak earnings and rising retail stress as reasons for negative investor sentiment
The three heavyweights -- Axis Bank, HDFC Bank and SBI -- had risen between 2.9 percent and 7.6 percent over the past five sessions, supported by strong second-quarter results across the banking sector.
Shares of RBL Bank jumped more than 9 percent after Emirates NBD announced plan to acquire a majority stake in the listed domestic private sector lender.
HDFC Bank, ICICI Bank and other private lender stocks also dropped. This pushed the Nifty Bank index down nearly 1%.
RBL Bank share price: The shares of the lender have now snapped a four-day gaining streak.
IDFC First Bank shares hit an intraday high of Rs 77.39 apiece, the highest level seen by the stock is nearly 11 months.
Bank stocks have been in focus recently, with private and PSU bank stocks seeing significant surge and pushing the broader Nifty Bank index to fresh lifetime highs.
SBI, India's largest lender, is planning to raise funds through the issuance of Basel III-compliant tier-II bonds with a 10-year or 15-year maturity in July or August, news agency Reuters has reported citing sources.
HDFC Bank's Rahul Shukla and Bajaj Finance's Anup Saha are also likely to be running for the role, CNBC-TV18 reported.
Axis Bank shares surged 2 percent after lender’s Q4 results beat estimates. It had reported a net profit of Rs 7,118 crore in Q4FY25, marginally lower than Rs 7,130 crore in the corresponding quarter last year.
The moderation in both headline and core inflation strengthens the case for a potential policy rate cut, said Mahendra Patil frokm MP Financial Advisory Services LLP
The volatility seen around bank stocks also comes amid anticipation of a rate cut by RBI’s MPC, which is set to announce its decision on April 9.
ICICI Bank and HDFC Bank shares are down 3% each, contributing the most to the decline on Nifty Bank index.
Union Bank said its total loan book increased 8.6 percent to cross Rs 9.82 crore by the end of Q4FY25, however, this was lower than the 11-13 percent loan growth guidance previously stated by the lender.
The Nifty PSU Bank index is currently the top gaining sector among NSE indices, supporting gains on Sensex and Nifty, which are higher after a muted start. Bank of Baroda was the top gainer on the index with Citi maintaining a Buy rating and opening a 'positive catalyst watch' on the stock.
ICICI Securities had announced its plans to delist from stock exchanges and merge with its parent ICICI Bank in June 2023, and the financial services firm became a wholly-owned subsidiary of the bank on March 24, 2025.
Punjab & Sind Bank shares have now extended gains for the fifth consecutive session, rising over 16 percent during the period.
Axis Securities predicted a bullish outlook for Nifty Bank, as well as the benchmark Nifty 50 index.
The rally in the bank stocks pushed the Nifty Bank index up by over a percent to cross 49,000 mark for the first time after two weeks.
IndusInd Bank shares were the top gainers on the index, snapping their 5-day losing streak. This comes a day after the stock crashed 27% after the bank reported discrepancies in its derivatives portfolio.
The stock crashed over 27 percent on March 11 after the bank said it found some discrepancies in its forex derivative portfolio, which could impact 2.35 percent of its net worth
'The bank has not hidden any disclosures at this point. We have been very transparent. This is a one-off item, not a recurring item,' says Kathpalia.
The Reserve Bank of India has approved the reappointment of Sumant Kathpalia as the managing director and CEO of the bank for another one year, with effect from March 24, 2025. The bank had sought a three-year term for Kathpalia.
In terms of financial health, banks are in their best shape in at least a decade, valuations of large banks are fair. Bank stocks may be bearing the brunt of indiscriminate selling triggered by global factors
The markets are still reeling under the effect of concerns over potential new tariffs from US President Donald Trump and cautious signals from US Federal Reserve officials