Q1 Results Preview: Is there going to be a bumper boom in banking shares or will there be a shock? Know the complete horoscope of every bank before the results

A very important time is about to begin for those investing in the Indian stock market and investors in the banking sectors. The season of corporate results for the June quarter (Q1 FY27) has arrived. This time the picture of quarterly performance of banks looks quite different and interesting from the last few quarters. On one hand, there has been a record increase in the demand for loans in the country, while on the other hand, deposits with banks have not increased at that pace. Due to this difference between credit and deposits, there may be pressure on the Net Interest Margin (NIM) of many leading banks, although the overall profit is expected to remain strong due to the strong provisions already made for bad loans. Mahakumbh of results will start from July 15, these are the main dates. The results of the first quarter in the banking sector will start with Jana Small Finance Bank on July 15. After this, on July 18, the four biggest market giants – HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank will declare their financial results together. After this, the results of Karur Vysya Bank will be out on 20th July, CSB Bank on 22nd July, Ujjivan Small Finance Bank on 23rd July and IDFC First Bank on 25th July. According to leading brokerage house Systematics Institutional Equities, the net profit of the entire banking sector may increase by 13.7 percent in this quarter. These big banks will create a stir, you can get a big surprise from this government bank. According to brokerage reports, some selected banks can make money for investors in this quarter. ICICI Bank remains at the top on the basis of strong asset quality and loan growth. At the same time, the country’s largest government bank SBI can earn huge profits on the basis of corporate loans and government schemes. HDFC Bank is expected to post strong results with loan growth of 15.5% and stable margins. Axis Bank’s profit may jump by 28 percent due to less provisioning. The biggest surprises may come from Indian Bank and Bank of India, which have seen strong rating upgrades. Shares of these banks may be disappointed, there is a possibility of pressure on profits. While on one hand many banks are bright, on the other hand investors have been advised to be cautious regarding some big banks. Bank of Baroda’s name is at the forefront in this list, where there is a possibility of decline in profits due to one-time settlement and weak loan growth related to UAE. Federal Bank’s profit may decline on quarterly basis due to weak fee income. Despite improvement in the microfinance (MFI) business of IndusInd Bank, there will not be any huge growth due to pressure on margins. What is the biggest challenge facing the banking sector and the role of CASA? The biggest challenge facing banks in this quarter is the slowdown in their deposits and CASA ratio (Current Account & Savings Account). There is a bumper demand for loans in retail, housing, vehicle and corporate sectors, but banks have to raise funds at expensive interest rates to distribute loans. If deposit growth remains slow in the coming period, the pressure on the net interest margin of banks may deepen, which may impact the net earnings of banks even if loan growth is good. There will be a special focus this time on the loan growth of institutions like Central Bank of India, UCO Bank, Canara Bank, Dhanlaxmi Bank and RBL Bank.