Which bank stock should you buy ahead of Q2 results - HDFC Bank, ICICI Bank, Yes Bank or Axis Bank?

As many as four heavyweight private lenders including HDFC Bank, ICICI Bank, Axis Bank and Yes Bank are set to announce their second-quarter earnings on Saturday, with analysts listing which stocks investors should buy ahead of the results announcements.

India’s largest private lender, HDFC Bank, has seen a sharp downturn in its share price since its Q1 earnings print failed to impress the market, adding to the selloff seen overall this year amid leadership worries. The stock has overall fallen more than 28% in 2026 so far.

HDFC Bank now enters the Q2 earnings season on a firmer footing as the leadership cloud appears to have cleared. The private lender appointed ICICI veteran Anup Bagchi as its new Managing Director and CEO, with RBI approving his appointment for a three-year term from October 27 onwards.


Also read |HDFC Bank shares drop 15% in 3 months since Q1 results. Will Q2 earnings bring redemption as leadership cloud clears?

ICICI Bank shares, meanwhile, have gained a little over 1% in 2026 so far, winning favour with several analysts and bucking the overall downtrend as Nifty dropped 14% during the same period. Axis Bank and Yes Bank shares have however fallen up to 4% this year.

Which banking stock should you buy?

As ICICI Bank, HDFC Bank, Axis Bank, and Yes Bank prepare to release their crucial Q2 FY27 scorecards this Saturday, capital allocation should focus squarely on banking leaders demonstrating superior deposit granulation and balance-sheet resilience, said Vaqarjaved Khan, Senior Fundamental Analyst at Angel One.

HDFC Bank enters this weekend's earnings with reinforced momentum, having reported provisional Q2 deposits surging nearly 19% year-on-year to Rs 33 lakh crore, comfortably outpacing its 16% gross advances growth to Rs 32 lakh crore while successfully mobilizing $11.5 billion via FCNR B deposits, Khan noted. Though its CASA ratio moderated to 31.6% amid a 22.8% expansion in time deposits to Rs. 22.76 lakh crore, its structural funding deficit has effectively cleared, he added.

Simultaneously, ICICI Bank commands an uncompromised institutional preference, backed by a sustained ROA exceeding 2.2% and stable net interest margins near 4.36%, reflecting benchmark underwriting standards, the analyst said. In contrast, Axis Bank navigates near-term margin compression, while Yes Bank continues to grapple with higher credit costs and muted core operating momentum. “For investors positioning ahead of the weekend print, accumulating HDFC Bank and ICICI Bank provides an optimal risk-reward skew, securing high-conviction exposure to India’s most robust deposit franchises,” he added.

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However, Sunny Agrawal, Head of Fundamental Research at SBI Securities, said investors can keep Axis Bank on radar as the bank has reported strong provisional updates. With a likely shift in advances towards RAM, there is a high probability of NIM expansion, he said, while noting that it is ideally recommended not to take large bets ahead of big events.

Technical view on HDFC Bank

The technical structure of India’s largest private lender HDFC Bank also draws attention. The stock is currently trading near a crucial support and demand zone of Rs 680-700 apiece, highlighted by Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers. Additionally, a three-point bullish divergence is visible on the weekly line chart, indicating a potential weakening of selling pressure and the possibility of a trend reversal.

“The stock may witness a recovery from the current zone, provided the support structure remains intact,” the analyst said. If the stock sustains above Rs 680 on a closing basis, it may gradually move towards the upside target of Rs 750 over the next one to two months, he added, noting that a decisive closing below Rs 680 however could invalidate the bullish setup and weaken the recovery prospects.

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Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.