HDFC Bank vs Yes Bank vs Kotak Bank vs IndusInd Bank - Which banking stock to buy after Q1 business update?

Q1 FY27 business update: Banking stocks like HDFC Bank, Yes Bank, Kotak Bank and IndusInd Bank reported their business updates for the quarter ending on 30 June, 2026, last week.

Shares of HDFC Bank and Axis Bank gained as much as 2.5% on Monday, while Kotak Mahindra Bank declined up to 3.5%, after the leading private-sector lenders released their business updates for the April–June quarter ahead of their earnings announcements.

Q1 business update snapshot

HDFC Bank

HDFC Bank reported a 15.4% year-on-year (YoY) rise in gross advances to ₹30.61 lakh crore for the quarter ended June 30, 2026, compared with ₹26.53 lakh crore in the corresponding quarter last year.

Advances under management stood at around ₹31.27 lakh crore at the end of the June quarter, marking a 12.4% YoY increase from ₹27.82 lakh crore as of June 30, 2025.

On the liabilities side, the bank's total deposits climbed 14.7% YoY to ₹31.71 lakh crore as of June 30, 2026, from ₹27.64 lakh crore in the year-ago period.

Meanwhile, current account savings account (CASA) deposits at the end of the quarter stood at approximately ₹10.26 lakh crore, up 9.4% from ₹9.37 lakh crore reported a year earlier.

Yes Bank

The private sector lender reported loans and advances of ₹2.85 lakh crore for the April–June quarter of FY27, registering an 18.4% year-on-year increase from ₹2.41 lakh crore in the corresponding quarter last year.

On a sequential basis, loans and advances grew 4% from ₹2.73 lakh crore in the March quarter (Q4 FY26).

Meanwhile, deposits climbed over 14% year-on-year to ₹3.15 lakh crore in Q1 FY27, compared with ₹2.76 lakh crore a year earlier. However, on a quarter-on-quarter basis, deposits slipped by more than 1% from ₹3.19 lakh crore reported in Q4 FY26.

The bank's current account savings account (CASA) deposits also rose 14.3% year-on-year to ₹1.03 lakh crore during the quarter, although they declined by around 8% compared with the preceding quarter.

Kotak Mahindra Bank

Kotak Mahindra Bank reported that its net advances increased over 15% year-on-year to ₹5.12 lakh crore for the quarter ended June 30, 2026, compared with ₹4.45 lakh crore in the corresponding period last year.

Deposits grew nearly 12% YoY to ₹5.73 lakh crore in Q1 FY27 from ₹5.13 lakh crore a year earlier. On a sequential basis, however, deposit growth remained largely flat, rising just 0.1% from ₹5.72 lakh crore recorded in Q4 FY26.

Meanwhile, the bank's current account and savings account (CASA) deposits climbed more than 10% YoY to ₹2.31 lakh crore in Q1 FY27. However, they declined around 7% quarter-on-quarter from ₹2.48 lakh crore in Q4 FY26. The lender clarified that these figures are provisional and subject to audit, with the final numbers to be announced along with its audited quarterly results.

IndusInd Bank

Private sector lender IndusInd Bank reported a 2.3% year-on-year decline in net advances to ₹3,26,171 crore as of June 30, 2026, according to its business update for the first quarter of FY27 released on Friday (July 3).

On a quarter-on-quarter basis, net advances increased 3.3% from ₹3,15,871 crore reported at the end of March 2026. Total deposits rose 4.5% year-on-year to ₹4,14,992 crore and were 3.8% higher than the ₹3,99,931 crore recorded in the previous quarter.

Retail deposits along with deposits from small business customers stood at ₹1,93,618 crore, compared with ₹1,91,263 crore in March 2026 and ₹1,84,623 crore a year earlier. Meanwhile, the bank's CASA ratio declined to 29.5%, from 31.2% in March 2026 and 31.5% in June 2025.

Which banking stock to buy after Q1 business update?

Harshal Dasani, Business Head – INVasset PMS, believes that HDFC Bank stands ahead, saying that in banking cycles, the right stock is rarely the one with the loudest growth number. It is the one where deposits, margins, credit cost and governance move in the same direction.

Meanwhile, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said that HDFC Bank remains the preferred large-cap banking pick, followed by Kotak Mahindra Bank, while Yes Bank suits higher-risk investors and IndusInd Bank warrants caution until operational recovery becomes visible.

“Among the major private banks, HDFC Bank stands out as the strongest pick after its Q1 business update. The bank reported healthy 15.4% growth in advances and 14.7% growth in deposits, reflecting balanced expansion while maintaining stable funding. Although CASA deposits grew a relatively modest 9.4%, the overall business momentum remains robust.

Kotak Mahindra Bank also delivered a solid quarter, with 15.1% loan growth and 11.7% deposit growth, indicating improving credit demand despite relatively slower deposit mobilisation.

Yes Bank posted the fastest loan growth at 18.4% alongside 14.3% deposit growth, highlighting continued business traction; however, investors should await profitability and asset-quality trends before turning constructive. In contrast, IndusInd Bank remains the weakest, with 2.3% decline in advances, modest deposit growth of 4.5%, and a fall in CASA ratio, indicating pressure on franchise quality,” Srivasatava said.

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