YES Bank, RBL Bank, IDFC First, KVB, Bandhan Bank: Q1 results preview

YES Bank is likely to report up to 50 per cent year-on-year (YoY) jump in net profit for the June quarter, while banks such as RBL Bank and Bandhan Bank could see profits falling up to 60 per cent for the same period, analysts suggested. The quarter gone by was marked by muted loan growth, exacerbated net interst margin (NIM) pressure and seasonal uptick in slippages.

Despite adequate liquidity and savings rate cuts, private banks are likely to record subdued net interest income (NII) growth of 4 per cent YoY, ICICI Securities said.

"Although banks are likely to sustain controlled opex and should see strong treasury gains, we estimate overall PAT decline of 9 per cent YoY/5 per cent QoQ due to weak top line. From a Q1FY26 perspective, Kotak Mahindra Bank, HDFC Bank, KVB, City Union Bank and YES Bank may sport relatively healthy results," it said. 

Despite weak NIM, ICICI Securities sees RoA (off low base) improving for RBL Bank, IDFC First Bank and Bandhan Bank, mainly due to easing credit costs. Axis Bank and Federal Bank are projected to post soft numbers. 

ICICI Securities sees YES Bank's Q1 profit at Rs 749.90 crore, up 49.3 per cent YoY. NII is seen growing 4.8 per cent YoY to Rs 2,352 crore. Banks such as Bandhan Bank (down 58.2 per cent) and RBL Bank (down 52.7 per cent YoY) are seen reporting sharp falls in bottom-lines. 

MOFSL sees IDFC First Bank's profit tumbling 63.7 per cent YoY. It expected , RBL and Bandhan Bank to report net profit falls of 62 per cent and 57 per cent, respectively. The brokerage is expecting double-digit NIM decline for all banks under its coverage. ICICI Bank, HDFC Bank and State Bank of India are its three top picks from the banking sector. 

"Systemic credit growth slowed to 9.6 per fcent as of 13th June 2025 amid demand moderation in the retail segment and a cautious growth strategy followed by banks in unsecured loans. With moderation in loan growth, the incremental CD ratio has eased to 74 per cent, though the outstanding CD ratio remains elevated at 79 per cent," MOFSL said. 

System deposit growth was stable at 10.4 per cent in June, although banks continue to face challenges in mobilizing low-cost CASA deposits, the brokerage said.