Archive · 23 Dec 2025
Axis Bank Outperforms Peers in 2025
Axis Bank has done better than its bigger friends HDFC Bank and ICICI Bank this year.
It has made 14.78% more money for its investors, while the others made between 6% and 11%.
A company called ICICI Securities thinks Axis Bank is changing its plan to focus more on giving out loans, even if it means making a little less money on those loans.
They still think it's a good bank to invest in, but they lowered their price target a bit.
Axis Bank's shares are currently at Rs 1,230.95, and ICICI Securities thinks they could go up to Rs 1,435, which is a 16.57% increase.
The bank is also expected to grow its loans by 15% next year, which is good news for investors.
Meanwhile, PSU banks like Indian Bank, Canara Bank, and SBI have seen big gains this year, with the Nifty PSU Bank index up 28%.
Private banks have not done as well, with returns between 6% and 17%.
PSU banks are also doing better in terms of profits and bad loans.
The government has said it won't raise the foreign investment limit in PSU banks, which has slowed down their rise in the market.
Axis Bank's 2025 returns at 14.78% outperform HDFC Bank and ICICI Bank's 6–11% gains.
ICICI Securities notes a strategic shift in Axis Bank's focus towards loan growth over net interest margin (NIM).
Current share price at Rs 1,230.95 with a target price of Rs 1,435, indicating 16.57% upside potential.
Axis Bank's loan growth revised to 15% YoY for FY26, up from previous 12% estimate.
ICICI Securities maintains a 'Buy' rating but lowers target price from Rs 1,450 to Rs 1,435.
- Who
- Axis Bank, HDFC Bank, ICICI Bank, ICICI Securities, PSU Banks (Indian Bank, Canara Bank, SBI), Private Banks (Federal Bank, IDFC First Bank, Kotak Mahindra Bank)
- What
- Axis Bank's stock performance and strategic shift, PSU banks outperforming private banks in 2025
- When
- 2025 so far, Q2FY26
- Where
- India
- Why
- Strategic shift towards loan growth and market performance, credit growth, margin recovery, and asset quality improvement in PSU banks
PSU Banks
Private Banks
Performance
PSU Banks
PSU banks like Indian Bank, Canara Bank, and SBI have seen significant gains, with the Nifty PSU Bank index up 28% in 2025.
Private Banks
Private banks like HDFC Bank and ICICI Bank have lagged behind with returns of 6–11%.
Profit Growth
PSU Banks
SBI reported a net profit of Rs 20,159.67 crore in Q2FY26, up from Rs 18,331.44 crore a year ago.
Private Banks
HDFC Bank posted a profit of Rs 18,641.28 crore in Q2FY26, up from Rs 16,820.97 crore in Q2FY25.
Asset Quality
PSU Banks
PSU banks have gross NPA ratios ranging from 1.72–3.45% and net NPAs between 0.16–0.83% in Q2FY26.
Private Banks
Private banks have gross NPA ratios ranging from 0.76–5.02% and net NPAs between 0.30–1.37% in Q2FY26.
- Axis Bank 2025 Returns
- 14.78%
- HDFC Bank 2025 Returns
- 6–11%
- ICICI Bank 2025 Returns
- 6–11%
- ICICI Securities Target Price
- Rs 1,435
- Current Axis Bank Share Price
- Rs 1,230.95
- Projected Upside Potential
- 16.57%
- FY26 Loan Growth Estimate
- 15% YoY
- FY27 Adjusted Book Value
- 1.5 times
- Nifty PSU Bank Index Gains
- 28%
- Indian Bank Gains
- 34%
- Canara Bank Gains
- 33%
- Union Bank of India Gains
- 21%
- SBI Gains
- 18%
- Federal Bank Gains
- 23%
- IDFC First Bank Gains
- 22%
- Kotak Mahindra Bank Gains
- 17%
- SBI Q2FY26 Net Profit
- Rs 20,159.67 crore
- HDFC Bank Q2FY26 Net Profit
- Rs 18,641.28 crore
- Canara Bank Q2FY26 Net Profit
- Rs 4,773.96 crore
- Kotak Mahindra Bank Q2FY26 Net Profit
- Rs 3,253.33 crore
- PSU Banks Gross NPA Ratios
- 1.72–3.45%
- Private Banks Gross NPA Ratios
- 0.76–5.02%
- PSU Banks Net NPAs
- 0.16–0.83%
- Private Banks Net NPAs
- 0.30–1.37%