Hardening bond yields to weigh on bank profits in September quarter
Axis Bank is in focus in a banking & credit development.
· Economic Times Markets, ET Stocks
For the September quarter, Nifty 50 banks are forecasted to see an 11.5% rise in net interest income, yet net profits are expected to grow more slowly at around 10%. This growth is supported by robust capital inflows from the RBI's FCNR-B deposit swap scheme, bolstering deposit growth. Leading banks like Axis Bank and Kotak Mahindra Bank are likely to show substantial profit growth this quarter.
The analysis
Axis Bank reported movement of 10% and 11.5%. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is -0.7% on the day at ₹1,217.00, and has returned -1.0% over three months. It sits 13% below its 52-week high. The banks sector has moved -6.0% over the same period, so Axis Bank is running 5.0 points ahead of its peers.
This is an Asset quality / margins event. For lenders the headline profit is the least informative line. Slippages, credit cost and margin direction determine whether the quarter is repeatable. On the day the stock is -0.7%, so the price barely moved, which suggests this was expected or is seen as immaterial.
Why it matters
- Credit growth and asset quality are the pulse of the financial sector, which is the largest weight in Indian indices.
- With RBI involved, this carries a regulatory dimension that can outlast the immediate market reaction.
Market context
- In focus: Axis Bank (AXISBANK), in Banks.
- On the day, 1 of 2 are higher: Kotak Mahindra Bank leads at +0.6% and Axis Bank trails at -0.7%.
- Over three months: Axis Bank -1.0% against Banks -6.0% (5.0 points ahead); Kotak Mahindra Bank +18.5% against Banks -6.0% (24.5 points ahead).
| Company | Price | Day | 1M | 3M | From 52-wk high | Volume vs 20-day | Market cap |
|---|---|---|---|---|---|---|---|
| Axis BankAXISBANK · Banks | ₹1,217.00 | -0.7% | -0.7% | -1.0% | -13.3% | 0.5× | — |
| Kotak Mahindra BankKOTAKBANK · Banks | ₹461.60 | +0.6% | +10.7% | +18.5% | 0.0% | 0.9× | — |
Banks
1M -3.4% · 3M -6.0%
Axis Bank, Kotak Mahindra Bank
Capital Goods & Engineering
1M -10.9% · 3M -5.3%
Capital Markets
1M -2.9% · 3M -6.3%
Prices as of 30 Oct 2026, 16:10 IST. Sector moves are the average of the stocks we track in each sector.
In this story
Related coverage
Sebi issues final order against Axis Capital, imposes regulatory censure; Axis Bank shares fall over 1%
Yes Bank shares extend decline to 26% in October, hit a multi-year low. Why are investors turning cautious?
Sebi pushes for resilient capital markets, focuses on investor protection: Chairman
Venture capital firm Octopus Ventures leads $38 million investment in Braid
Bank of Baroda Q2 Results: Standalone profit jumps 36% YoY to Rs 6,532 crore; NII up 9