Majority of banks see credit growth outpacing deposits in Q2, RBL Bank leads the way
HDFC Bank set out an expansion in a banking & credit development.
6 Oct 2026 · Economic Times Markets, ET Stocks
In the second quarter, most banks experienced higher credit growth compared to deposit growth. HDFC Bank and Bank of India were notable exceptions, demonstrating higher deposit growth rates. RBL Bank led the growth charts in both assets and liabilities, although it started from a lower base. Union Bank of India had the largest disparity between credit and deposit expansion rates among the banks.
The analysis
Against that, the stock is -0.9% on the day at ₹705.30, and has returned -15.3% over three months. It sits 30% below its 52-week high, which means a good deal of bad news was already in the price. The banks sector has moved -4.0% over the same period, so HDFC Bank is running 11.3 points behind 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 -0.9%, so a modest reaction.
For HDFC Bank, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Why it matters
- Credit growth and asset quality are the pulse of the financial sector, which is the largest weight in Indian indices.
- Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
Market context
- The company directly in focus is HDFCBANK.
- Sector exposure: Banks.
- The immediate tone of coverage reads positive.
In this story
Related coverage
HDFC Bank shares drop 15% in 3 months since Q1 results. Will Q2 earnings bring redemption as leadership cloud clears?
Kotak, Axis, IndusInd Bank shares: Q2 business updates trigger sharp moves- How stocks reacted; key data details to know
Indian banks face a Q2 paradox: FCNR boosts loan growth but margins shrink
Banks vs NBFCs: Which stocks could benefit as RBI set to hike rates for the first time in 3 years?
Kotak Mahindra Bank Q2 Updates: Deposits Up 23%, $5.78B Mobilised Via RBI's Strategic Swap Window