Bank Q1 Results Preview: NIMs To Stay Flat, FCNR Relief Ahead; Check ICICI, SBI, HDFC, PNB, AU, Kotak | TP

Bank Q1 Results Preview: Banks' asset quality is likely to remain robust; however, net interest margins (NIMs) are expected to remain range-bound, as high bulk deposit rates will partially offset deposit repricing. PSU banks are likely to remain relatively subdued during the April quarter of financial year 2026-27; however, mid-sized private banks are likely to outperform, according to experts. State Bank of India, ICICI Bank, HDFC Bank, AU Bank, and Kotak Mahindra Bank are among the top picks by brokerages.

Among the large private banks, ICICI Bank is likely to lead the growth with around 4% of quarter-on-quarter (QoQ) loan growth. However, PSU banks' growth is likely to remain relatively subdued. Mid-sized private banks like AU, RBL, DCB, and IDFC are expected to outperform with 3.9-5.4% loan growth, as per the Motilal Oswal report.

Bank Q1 Results Preview

Banking systematic credit growth may accelerate to 17.7% driven by higher working capital loan, regulatory shift in focus from LDR and surge in corporate borrowings followed by the rise in bond yields during Q1FY27, as per Motilal Oswal.

However, the continued increase in the share of corporate loans is expected to weigh on yields, the lagged repricing of the term deposit book should partially offset the pressure, as per Systematix Institutional Equities.

Bank Q1 Results Preview: NIMs To Remain Flat, FCNR Benefit To Be Visible in Q2

Bankers are expecting $50 billion inflows through FCNR (B) by August itself, however, the benefits of these flows will be visible in the second quarter of financial year 2026-27, noted Dolat Capital in its report. The brokerage expect credit growth of 16% on a year-on-year basis in Q1FY27.

The Net Interest Margins (NIMs) for banks is likely to remain flat or marginally lower in the first quarter of Financial Year 2026-27, as per Systematix Institutional Equities report. However, Motilal Oswal, sees mixed NIM expansion outlook for banks. Federal Bank, DCB are likely to see margin expansion, while HDFC Bank, ICICI Bank, Axis Bank are likely to report a marginal decline and KMB can see moderation, as per MOFSL report.

"Among other PVBs, we expect NIMs to decline by ~13bp QoQ for AU, 10bp QoQ for Bandhan and 14bp QoQ for Equitas SFB. For PSU banks, margins are likely to remain broadly stable in a narrow range," the brokerage added in its report.

Q1 Results Preview: HDFC Bank Share Price Target

HDFC Bank loan growth is expected to be 2.4% on a sequential bass in Q1FY27 led by corporate, BB, agriculture, gold loans, etc. However, mortgage loan growth may lag and cost ratios will be contained amid benefits from operating leverage, as per Motilal Oswal report. Slippages are expected to marginally increase sequentially and so are provisions, as per Systematix report.

Motilal OSwal maintained a target price of Rs 1,100 per share with a 'Buy' rating for HDFC Bank stock. HDFC Bank's NIM is likely to resin largely flat amid interest reversals on seasonal agri stress. HDFC Bank stock was trading 3.58% higher at Rs 839.7 per share on BSE at 1:54 pm.

Q1 Results Preview: ICICI Bank Share Price Target

ICICI Bank's NIMs are likely to decline slightly and adjusted NIMs are likely to remain largely flat. Gold, corporate and mortgage to drive healthy loan growth. The private lender's deposits are also likely to rise by 15.2% on an annual basis, as per Motilal Oswal report.
NIMs to decline slightly.

Marginal increase in operational expenses is expected driven by employee expense. "The QoQ advances growth to be in line with industry growth. The fall in YoA will not be completely off set by the fall in CoD, hence, NIM will be marginally lower QoQ," as per Systematix Institutional Equities. ICICI Bank stock was trading 1.22% higher at Rs 1427.25 per share on BSE at 1:54 pm.

Q1 Results Preview: SBI Share Price Target

State Bank of India is poised to deliver industry-leading credit growth of 13-15% CAGR over FY26-28E. The growth was driven by steady momentum across RAM segments, improving traction in Xpress Credit, and a healthy corporate loan pipeline led by infrstructure, renewables and data centres.

State Bank of India's slippages are expected to be marginally increase sequentially and provisions to be higher sequentially leading to higher credit costs. Motilal Oswal maintained a 'Buy' rating with a target price of Rs 1,300 per share. SBI stock was trading 0.07% higher at Rs 1040.6 per share on BSE at 2:15 pm.

Q1 Results Preview: Punjab National Bank Share Price Target

Punjab National Bank's loan growth is likely to rise 15% on an annual basis led by corporate and MSME, however, retail loans are likely to lag. Deposit growth is likely to surge 10% on an annual basis. PNB's NIM may inch up 4 basis points sequentially to 2.51%, as per Motilal Oswal report. PNB stock was trading 0.9% lower at Rs 104.4 per share on BSE at 2:15 pm. Motilal Oswal gave a 'Buy' rating with a target price of Rs 135 per share.

Q1 Result Preview: Kotak Mahindra Bank Target Price

Kotak Mahindra Bank's NIMs are likely to contract by 14 bp on a sequential basis, whereas credit cost may see a marginal uptick. Loan deposit growth is likely to be 3.5% on sequential basis. Motilal Oswal gave a 'Buy' rating with a target price of Rs 470 per share. Kotak Mahindra stock was trading 3.78% lower at Rs 381.7 per share on BSE at 2:14 pm.