New Delhi: Private sector banks in India slipped in market capitalisation during the July–September quarter (Q2 FY26), as trade uncertainties dragged on market sentiment, according to a new report on Monday, adding that public sector banks (PSBs) gained during the three-month period, staying resilient against external pressures.
HDFC Bank shed 4.8 per cent in market cap during the third quarter, while ICICI Bank dropped 6.7 per cent, according to S&P Global Market Intelligence data.
Both the private sector lenders posted market cap gains in the April–June quarter, buoyed by rate cuts and high liquidity in the banking system.
Other private sector lenders, such as Kotak Mahindra Bank Ltd. and Axis Bank Ltd., also posted declines in market cap in the third quarter compared to the previous three months, the data shows.
Private sector lender IndusInd Bank was the worst performer in the third quarter, shedding 15.7 per cent of its market cap and slipping one rung to the 14th position. The Mumbai-based lender disclosed a series of accounting lapses earlier in 2025.
Still, the top seven lenders maintained their market cap rankings in the Indian market, the report mentioned.
The State Bank of India (SBI), India’s largest bank by assets, added 10 per cent in market cap in the third quarter. Among its public sector peers, Bank of Baroda gained 3.9 per cent and Punjab National Bank added 2.1 per cent.
Bengaluru-headquartered Canara Bank gained 8.3 per cent, now ranking eighth among India’s biggest lenders by market cap, up from 10th three months earlier. Chennai-based Indian Bank posted a 16.7 per cent increase in market cap in the third quarter, the highest among the top 20 Indian lenders ranked by market cap.
The government slashed the domestic Goods and Services Tax (GST) rates last month and expects the economy to get a boost from the upcoming festive demand and a normal rainy season that will support rural income.
The Reserve Bank of India (RBI) has also raised its GDP estimate for the current fiscal year ending in March 2026 to 6.8 per cent from 6.5 per cent. The central bank kept its benchmark interest rates unchanged, though many economists expect it to cut rates further after two reductions in the first half of 2025.
Estimates in June by Visible Alpha, a part of S&P Global Market Intelligence, showed that the private sector lender may take two years to recover its earnings after a series of lapses in its derivatives trades, used to hedge foreign currency exposure, led to losses.
