HDFC Bank June-Quarter Update: Advances Up 15.4%

The trigger: a strong provisional Q1 update

HDFC Bank shares rallied after the lender released its provisional business update for the June 2026 quarter. The stock gained more than 5% over the last two trading sessions following the announcement. In Monday’s session, the stock climbed about 3.6%, helping lift broader market sentiment.

The move mattered because HDFC Bank is a heavyweight in Indian indices. Reuters reported the lender contributed about 56% to the Nifty 50’s gains on the day, underlining the stock’s outsized influence on benchmark performance.

Key operating numbers for the June 2026 quarter

For the quarter ended June 2026, HDFC Bank reported gross advances of ₹30.61 trillion, up 15.4% year-on-year (YoY). The bank’s advances under management (AUM), which includes inter-bank participation certificates, bills rediscounted, and securitisation or assignment, rose 12.4% YoY to ₹31.27 trillion from ₹27.82 trillion a year earlier.

On deposits, the provisional update indicated deposits rose 14.7% YoY to approximately ₹31.70 trillion. Together, the advances and deposit growth figures were read by the market as a signal that business momentum remained intact into the new quarter.

Brokerages: steady momentum, margins watched

ICICI Securities said HDFC Bank’s business momentum remained steady, pointing to sequential advances and deposits that continued to register healthy growth. Motilal Oswal also flagged robust loan growth, marginally ahead of estimates, while deposit growth was described as in line.

Motilal Oswal added that margins were expected to contract slightly during the quarter. In its preview note, the brokerage estimated a 2 basis point (bp) quarter-on-quarter (QoQ) margin contraction, keeping investor focus on profitability metrics alongside growth.

Market reaction: banks lead, IT lags

Banking stocks moved up in early trade as HDFC Bank’s update set the tone for the sector. The Nifty Private Bank index gained around 0.5%, with HDFC Bank leading the move. Other banking names mentioned as gaining included Bandhan Bank, IndusInd Bank, RBL Bank and Federal Bank.

On the Sensex, HDFC Bank was the top gainer, up over 3.5% during the session. ICICI Bank rose more than 1%, while SBI traded in the green. Axis Bank also featured among earlier session gainers after its quarterly update.

In contrast, the Nifty IT index fell 0.6% as investors awaited the start of first-quarter earnings later in the week. Reuters cited expectations of subdued IT earnings due to AI-driven pricing pressures, weak client spending and geopolitical turmoil.

Why crude prices also mattered that day

Reuters also noted that lower crude oil prices aided sentiment as Indian shares advanced. While the HDFC Bank move led the day’s headline, the supportive macro backdrop helped maintain a risk-on tone across the market.

This combination of a heavyweight bank rally and softer crude prices provided a positive setup for benchmarks, even as certain sectors such as IT lagged.

Market-cap shifts: Airtel moves ahead of HDFC Bank

Separate market data over the period highlighted shifting leadership among India’s most valued listed firms. Bharti Airtel overtook HDFC Bank to become India’s second-most valuable listed company by market capitalisation, behind Reliance Industries.

In one update, Airtel’s market capitalisation was reported at ₹11,80,328 crore, slightly ahead of HDFC Bank during the session, with the gap varying through the day. Reliance Industries remained the most valued company, with market cap figures reported at ₹18.04 lakh crore in that update.

Weekly valuation moves: banks and financials in focus

Weekly market-cap summaries showed how quickly leadership can change when benchmarks rise. One report said the combined market valuation of six of the top-10 most valued firms surged by ₹1 lakh crore over the week, with Bharti Airtel and Bajaj Finance among the biggest gainers.

Another weekly update said eight of the top-10 firms added ₹4,13,003.23 crore in market value as the Sensex rose 5.7%. In that week, HDFC Bank added ₹91,282.67 crore, taking its market valuation to ₹12,47,478.57 crore.

Key data points at a glance

What investors are likely to track next

The provisional update lifted expectations that the banking earnings season could remain constructive, but commentary from brokerages suggests margins will be closely watched alongside growth. With loan growth described as robust and deposits broadly in line with expectations, the near-term focus shifts to the profitability picture in the quarterly results.

More clarity is expected as first-quarter earnings reports begin later in the week, while sectoral performance may continue to reflect a split between banking strength and IT caution cited in the market commentary.