Private banks face margin squeeze; HDFC and Axis decline
HDFC Bank and Axis Bank reported significant declines in net interest margins, leading to a selloff in their stocks. HDFC's NIM hit a record low of 3.2%, while Axis Bank's decreased by 16 basis points, contrasting with ICICI Bank's stable performance.
after close1 source ↓written by the desknot a recommendation
- NIM fell
- 3.2%
- Bank's shrank
- 16 basis points
- in shares
- 1.1% rise
Major Indian private banks, including HDFC Bank and Axis Bank, faced a selloff after revealing record low net interest margins (NIM). HDFC Bank's NIM fell to 3.2%, while Axis Bank's shrank by 16 basis points. In contrast, ICICI Bank saw a 1.1% rise in shares, maintaining a steady NIM of 4.28%. This divergence highlights investor concerns over profitability in the sector.
Not investment advice. For informational purposes only.