Mumbai, India – April 27, 2026 – Indian banking stocks experienced a volatile trading session today following the release of their March quarter earnings. IndusInd Bank emerged as a clear winner, with its shares jumping over 6%, while RBL Bank and Axis Bank saw their stock prices decline by approximately 5% each.
Mixed Q4 Results for Indian Banks
IndusInd Bank's impressive performance was attributed to a robust profit beat in its fourth-quarter results, primarily driven by significantly lower provisioning. The bank's shares reached a high of Rs 899.90 on the NSE.
In contrast, RBL Bank's earnings fell short of analyst estimates. The bank reported softer margins and fee income, coupled with persistent stress in its credit card segment, leading to a 4.76% drop to Rs 306.10 per share.
Axis Bank also faced investor disappointment, with its stock declining 4.83% to Rs 1,299.90. The primary reason cited was a miss on operating profit, despite the lender reportedly utilizing a one-off tax benefit gain to bolster its provision buffer.
IndusInd Bank: Analysts See Potential, But Challenges Remain
Brokerage firm ICICI Securities suggested that the worst might be over for IndusInd Bank, anticipating better growth and credit costs ahead, though they noted the path to normalized loan growth could be challenging given segment changes and a competitive deposit market. ICICI Securities set a target price of Rs 900.
Antique Stock Broking maintained a 'HOLD' rating, adjusting its target to Rs 915 from Rs 930. Nirmal Bang Institutional Equities also kept a 'HOLD' rating, increasing its target to Rs 899 from Rs 807. Nuvama Institutional Equities echoed sentiments about improving earnings and credit costs but highlighted the difficult trajectory for loan growth, maintaining a 'HOLD' with a Rs 900 target.
HDFC Securities, however, maintained a 'Reduce' rating with a target of Rs 760, citing sub-par deposit growth, inadequate provisioning, and ongoing stress in its unsecured loan book.
RBL Bank: Growth Amid Margin Contraction and Credit Card Stress
ICICI Securities acknowledged RBL Bank's strong growth but warned of a sharp contraction in Net Interest Margin (NIM) and elevated credit card stress in the first half of FY27, setting a revised target of Rs 390.
Elara Securities retained an 'Accumulate' rating with a target of Rs 345, noting that the current valuation largely reflects recent progress and residual risks, seeking greater consistency in earnings. MOFSL reiterated a 'BUY' rating with a target of Rs 370, expecting RoA to recover to 1.3% by FY28E, supported by calibrated unsecured segment expansion and capital infusion.
Axis Bank: Mixed Performance with Positive Outlook
Antique Stock Broking maintained a 'BUY' rating on Axis Bank with a target price of Rs 1,535. They observed a mixed performance in Q4FY26, with improved asset quality offset by weaker operating performance due to lower other income and higher operating expenses. Improved growth outlook and normalizing asset quality were considered key positives.
Nirmal Bang Institutional Equities also maintained a 'BUY' rating, raising its target price to Rs 1,597 from Rs 1,500. The firm remains positive due to recent business growth, expected expansion from Q1FY27, and attractive valuations. MOFSL, however, retained a 'Neutral' rating with a target of Rs 1,475, noting an inline quarter with standard asset provisions offset by a tax reversal, and strong business growth but monitoring the evolving West Asia situation.