Archive · 27 Jul 2026
Private Banks to Outperform PSU Lenders in Q1 FY27
Private banks in India are expected to do better than government-owned banks in the first quarter of the financial year 2027.
HDFC Bank, the biggest private bank, is expected to make more profit than the State Bank of India (SBI), the largest government-owned bank.
Axis Bank is expected to have the highest growth in profits.
Private banks are doing better because they have better ways of getting money and lending it out.
SBI's profit is expected to go down a little, while HDFC Bank's profit is expected to go up.
The differences in how they make money and manage their loans and deposits are the main reasons for this.
Private-sector banks in India expected to outperform PSU lenders in Q1 FY27.
HDFC Bank projected to surpass SBI in quarterly net profit.
Axis Bank expected to report the strongest earnings growth at 24.7% year-on-year.
SBI's NIM expected to improve marginally to 2.66%, while HDFC Bank's NIM projected to ease to 3.29%.
Private banks have better funding profiles and loan portfolios driving stronger earnings growth.
- Who
- Private-sector banks like HDFC Bank, Axis Bank and public-sector banks like SBI
- What
- Projected earnings performance for Q1 FY27
- When
- April-June quarter of FY27
- Where
- India
- Why
- Due to stronger net interest margins, healthier loan and deposit mix, and resilient earnings growth for private banks.
Private Banks
Public Sector Banks
Earnings Growth
Private Banks
Expected to have stronger earnings growth due to better funding profiles and loan portfolios.
Public Sector Banks
Projected to have slower earnings growth.
Net Interest Margins
Private Banks
HDFC Bank's NIM projected to ease slightly but remain above SBI's.
Public Sector Banks
SBI's NIM expected to improve marginally.
- HDFC Bank Net Profit
- Rs 188.8 billion (expected)
- SBI Net Profit
- Rs 185.1 billion (expected)
- Axis Bank Net Profit Growth
- 24.7% year-on-year
- SBI NIM
- 2.66% (expected)
- Axis Bank NIM
- 3.55% (expected)
- HDFC Bank NIM
- 3.29% (expected)