PSU bank stocks rally as PNB beats estimates; Axis, HDFC fall

Public-sector bank shares advanced sharply on Monday, October 19, with Punjab National Bank gaining 8% after beating quarterly earnings estimates, while Axis Bank dropped more than 5% following an earnings miss. Economic Times Markets reported that the Nifty PSU Bank index climbed over 2%, even as the Nifty Private Bank index lost more than 1%.

The broader Nifty Bank index traded marginally lower. These moves represent the publication’s intraday snapshot, not closing prices or a live market feed.

PNB’s earnings beat lifts public-sector lenders

PNB reported standalone net profit of ₹5,532 crore for July–September, the second quarter of FY27, up 13% from a year earlier. Net interest income—the difference between interest earned and interest paid—rose about 11% to ₹11,601 crore from ₹10,469 crore.

The bank also reported improved asset quality. Brokerages raised their share-price targets after the earnings beat, accompanying the stock’s 8% advance.

Other public-sector lenders joined the rally. Canara Bank and Union Bank of India gained more than 3% each, while Bank of Baroda and Bank of India rose over 2% apiece. State Bank of India, Punjab & Sind Bank, Bank of Maharashtra, Indian Bank and Central Bank of India gained around 1% each.

Why rising profits did not lift private-bank shares

The clearest contrast was between PNB and Axis Bank: PNB exceeded earnings forecasts, whereas Axis missed them despite reporting faster year-on-year profit growth. The figures show why profit growth alone does not explain the session’s share-price response; performance against investor expectations also mattered.

Axis Bank’s standalone net profit increased 38% to ₹7,003 crore, but came in below analyst estimates. Its net interest income grew 12% to ₹15,371 crore, and its quarterly net interest margin stood at 3.36%. The shares fell more than 5%.

HDFC Bank declined over 2% after reporting quarterly net profit of ₹19,510 crore, up 4.6% from ₹18,641 crore a year earlier. The report did not establish a specific earnings-estimate shortfall for HDFC Bank.

ICICI Bank slipped more than 1% despite a 20.1% increase in net profit to ₹14,843 crore from ₹12,359 crore. Its net interest income rose 17.7% to ₹25,339 crore from ₹21,529 crore. However, its net interest margin narrowed to 4.18%, compared with 4.36% in the preceding quarter and 4.30% a year earlier.

That margin decline provides context for the market’s muted response to ICICI Bank’s profit growth, but does not establish a single cause for the stock’s fall. Yes Bank also lost over 1% after its results, while Kotak Mahindra Bank, Bandhan Bank and IndusInd Bank fell nearly 1% each.

Nifty Bank: analyst identifies resistance at 56,200

The report placed Nifty Bank at 55,650 following gains in the previous two sessions. Vatsal Bhuva, technical analyst at LKP Securities, said the index had regained its 20-day moving average and that a relative strength index above 50, alongside a bullish crossover, suggested improving near-term momentum.

Bhuva saw scope for a move towards the 50-period simple moving average, with resistance at 56,200. He identified immediate support at 55,200, followed by 55,000. These are the analyst’s technical assessments, not assured market outcomes or investment recommendations.