Top banking share to buy: Amid ongoing earnings season, private sector banks like HDFC Bank, ICICI Bank, Axis Bank, Yes Bank and IDBI Bank have already released their financial results for the quarter ending on 30 September, 2026.
While market analysts remain bullish on banking stocks, they have identified the companies best positioned to perform following their Q2 results for 2026.
HDFC Bank posted a 4.6% year-on-year increase in net profit to ₹19,510 crore in the second quarter of FY27, compared with ₹18,641 crore in the corresponding quarter of the previous financial year.
The bank’s net interest income (NII), calculated as the difference between interest earned and interest expended, grew 9.7% year-on-year to ₹34,620 crore for the quarter ended September 30, 2026, from ₹31,550 crore a year earlier. Its net interest margin (NIM) stood at 3.16% on total assets and 3.32% on interest-earning assets.
According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, HDFC Bank showcases outstanding cost management with an industry-best cost-to-income ratio of 39.1%, strong credit quality (GNPA of 1.11%), and an impressive Capital Adequacy Ratio (CAR) of 18.9%.