Private sector banks in India saw a drop in market capitalisation during the July–September quarter (Q2 FY26). Trade uncertainties affected investor sentiment, the report said. HDFC Bank fell 4.8 per cent, while ICICI Bank declined 6.7 per cent.
Other private lenders like Kotak Mahindra Bank and Axis Bank also recorded market cap losses. IndusInd Bank was the worst performer, losing 15.7 per cent and falling to the 14th position after reporting accounting lapses.
Public sector banks gained in the same period. SBI’s market cap rose 10 per cent. Canara Bank and Indian Bank gained 8.3 per cent and 16.7 per cent, respectively. Bank of Baroda and Punjab National Bank also reported moderate gains.
The government expects the economy to benefit from lower GST rates, festive demand, and normal rainfall. RBI raised GDP growth for FY26 to 6.8 per cent. Economists anticipate further rate cuts after two reductions in early 2025, supporting the banking sector.
