Shares of Kotak Mahindra Bank (KMB) tumbled by nearly 4% on July 6, 2026, after the bank released its first-quarter business update. The decline, which saw the scrip hit a low of Rs 381 apiece, was attributed by Ashika Institutional Research to relatively moderate credit growth of 15% and subdued deposit growth of 11.7% in the June quarter.
In contrast, other major Indian lenders experienced varied market reactions to their own Q1 updates. HDFC Bank Ltd. saw its shares gain 3%, closing at Rs 825.10. HDFC Bank reported robust advances growth of 15.4% year-on-year and deposit growth of 14.7%.
Axis Bank Ltd. also performed positively, rising 0.74% to Rs 1,352.45 apiece. Axis Bank announced strong gross advances growth of 18.8% year-on-year and deposit growth between 18.1% and 18.2% year-on-year.
Public Sector Banks Show Mixed Performance
Among public sector banks (PSBs), the performance was mixed. Punjab National Bank (PNB) shares fell 0.5% to Rs 104.81, primarily due to a weaker 8.5% year-on-year deposit growth. Bank of Baroda (BoB) also saw a slight decline of 0.6%, with its shares trading at Rs 250.60, despite reporting a 13.8% year-on-year deposit growth.
RBL Bank Ltd. shares edged up by a marginal 0.18% to Rs 361.75.
Analyst Insights on Banking Sector Trends
Ashika Institutional Equities noted that public sector banks marginally outpaced their private counterparts in credit growth during the quarter, while private lenders maintained their lead in deposit mobilization. The research firm highlighted continued funding-side pressures for private banks, evidenced by higher Credit-Deposit ratios and a moderation in CASA (Current Account Savings Account) deposits.
According to Ashika, the ability to sustain deposit mobilization, protect CASA franchises, and effectively manage the incremental cost of funds will be crucial differentiators for banks aiming to maintain credit growth momentum throughout the fiscal year 2027.