Shares of India’s largest private lenders have extended their decline this week, with HDFC Bank, Axis Bank, and Kotak Mahindra Bank leading a broad-based selloff in the banking sector.
The selling pressure follows the release of first-quarter fiscal 2027 results for the April-June period, which revealed thinning net interest margins and deteriorating profitability metrics across the group.
HDFC Bank has been the most severely impacted, with shares tumbling more than 7% over two trading sessions.
HDFC Bank has been the most severely impacted, with shares tumbling more than 7% over two trading sessions.
The sharp repricing has wiped out approximately ₹89,636 crore in market capitalisation for the lender alone, as investors react to the acceleration of selling pressure.
The decline marks a third consecutive session of losses for HDFC Bank, signaling that market participants are still digesting the implications of the weak earnings print.
The sector-wide weakness reflects growing concerns over margin compression in the Indian banking system.