State-owned Life Insurance Corporation of India (LIC) has emerged as the highest profit-making firm in the Indian financial sector in the March quarter, netting a little over Rs 23,400 crore.

Even among Central Public Sector Enterprises, the Corporation maintained the number one position for fourth-quarter profit for FY26.

Last week, LIC reported a 23 per cent jump in net profit to record Rs 23,420 crore in the just concluded March quarter as compared to Rs 19,013 crore in the corresponding period of the previous year..

The insurance behemoth was followed by the country’s biggest lender State Bank of India (SBI), and the second-biggest lender HDFC Bank with profit of Rs 19,684 crore and Rs Rs 19,221 crore, respectively, during the fourth quarter, according to the financial numbers posted on exchanges.

However, SBI significantly outpaced LIC in annual profit, earning Rs 80,032 crore in FY26 compared to LIC’s Rs 57,419 crore.

Similarly, HDFC Bank’s profit stood at Rs 74,670 crore while ICICI Bank posted a profit of Rs 50,147 crore.

Among other PSUs, Indian Oil Corporation (IOC) closed the fourth quarter with a net profit of Rs 11,378 crore followed by Coal India at Rs 10,839 crore, Power Finance Corporation (PFC) earned Rs 8,598 crore and NTPC Rs 8,747 crore as profit, as per the data available on stock exchanges.Other Central Public Sector Enterprises (CPSEs) like Power Grid Corporation of India posted a profit of Rs 4,546 crore, REC Ltd net profit at Rs 3,375 crore, and Steel Authority of India Ltd at Rs 1,680 crore.

A day after the stellar performance of LIC, its shares jumped 5 per cent in opening trade at Rs 839 apiece on the BSE on May 23.

LIC’s Assets Under Management (AUM) increased to Rs 57,29,396 crore as of March 31, 2026, from Rs 54,52,297 crore on March 31, 2025, registering an increase of 5 per cent year-on-year.

During the year, LIC’s total premium income rose by 10 per cent to Rs 54,52,297 crore compared to Rs 54,52,297 crore a year ago. At the same time, adjusted net worth improved to Rs 1,69,605 crore from Rs 1,20,258 crore in FY25.

Among the entire corporate sector. Vodafone Idea became the highest quarterly profit earner in the January-March quarter with a record bottomline of Rs 51,970 crore, its first ever in about six years mainly due to relief in statutory liabilities.

It was followed by Reliance Industries with a net profit of Rs 16,971 crore, down from Rs 19,407 crore in the same January-March period in the preceding year.

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The pecking order of India’s top companies by market capitalisation has remained broadly stable at the top since September 30, 2024, even as there has been a steady reshuffle beneath the surface.

Reliance Industries has stayed unchallenged as the country’s most valuable company, despite wide swings in valuation. Just below, HDFC Bank moved ahead of Tata Consultancy Services to take the second position, signalling a broader rotation from technology towards financials.

Bharti Airtel has emerged as a clear gainer, climbing into the top tier and holding its ground through successive quarters, while Infosys has ceded ground in the rankings, reflecting the IT sector’s waning relative clout.

ICICI Bank has remained broadly consistent, while State Bank of India has seen sharper swings even as it trends higher. Traditional defensives such as Hindustan Unilever and ITC have been largely stagnant in the market cap table.

Kolkata: Trading losses during the fourth quarter of 2025-26 weighed heavily on banks’ profitability while the business growth outlook got clouded due to the Iran war.

Five lenders, including private sector player Axis Bank, AU Small Finance Bank and state-owned UCO Bank, suffered treasury losses while a few others reported a dip in income as compared to the year-ago period. Ten banks announced their quarterly results so far.

“Trading losses are mainly due to interest rates rising in the last quarter. Also, the forex book corrections at margin could have affected treasury gains,” Bank of Baroda chief economist Madan Sabnavis said, adding that he expects a stable income from treasury in the first quarter of this fiscal.

Rising interest rates drove bond prices lower and yields higher, inflicting mark-to-market losses while the central bank mandated caps on banks’ net open positions in the foreign exchange market and curbs on forex derivatives impacted banks’ treasury income, said people familiar with the matter. The Reserve Bank of India (RBI) rejected requests to amortise mark-to-market treasury losses, compelling commercial banks to make full recognition in the fourth quarter.

Axis Bank suffered the heaviest trading loss of ₹606 crore in the January-March period, while ICICI Bank and IDFC First Bank booked a loss of ₹106 crore and ₹159 crore, respectively. UCO Bank reported a ₹16 crore treasury loss.

Axis and Uco reported a dip in their respective operating profit.

Meanwhile, experts expect a near-term deceleration in loan growth as lenders have turned cautious, shifting focus towards portfolio protection rather than balance sheet expansion.”There is no material impact of the geopolitical conflict so far on our business. That said, we remain cautious across customer segments,” said RBL Bank managing director R Subramaniakumar.

Axis Bank also took a hit on its profitability with a voluntary one-time provision of ₹2,001 crore on standard assets to cushion any possible credit risks on account of the Iran war.

The major sectors impacted by the war are fertilisers, steel and petroleum-based products, while early signs of deceleration are also visible in select indicators such as port cargo and air passenger traffic, said the RBI’s state of the economy report.

Business optimism fell to a five month low in March, one of its weakest levels since the Covid-19 pandemic, the RBI said.

“Credit growth will be in the range of 12-14%. Base effects along with caution on investments by large units in manufacturing will keep growth slower than last year,” Sabnavis said.

Bank credit grew 16.08% in 2025-26, RBI data showed.

The combined market valuation of seven of the top-10 most-valued firms eroded by Rs 2 lakh crore last week, with Tata Consultancy Services and Reliance Industries emerging as the biggest laggards, in-tandem with a bearish trend in equities.

Last week, the BSE benchmark Sensex tanked 1,829.33 points, or 2.33 per cent, and the NSE Nifty dropped 455.6 points, or 1.87 per cent.

“Markets ended lower after two consecutive weeks of gains, weighed down by heightened geopolitical tensions and weak earnings commentary from IT majors,” Ajit Mishra — SVP, Research, Religare Broking Ltd, said.

Global developments continued to dominate market direction, with ongoing uncertainty around the West Asia crisis and concerns over supply disruptions keeping crude oil prices elevated, he added.

The combined market valuation of seven of the top-10 most valued firms dropped by Rs 2,05,343.06 crore.

The market valuation of Tata Consultancy Services (TCS) tumbled Rs 66,699.44 crore to Rs 8,67,364.12 crore.

Reliance Industries lost Rs 50,670.34 crore from its valuation, which stood at Rs 17,96,647.50 crore.The valuation of HDFC Bank dived Rs 23,090.05 crore to Rs 12,08,225.48 crore and that of Life Insurance Corporation of India (LIC) dropped by Rs 19,670.75 crore to Rs 5,13,020.56 crore.

The market capitalisation (mcap) of Bharti Airtel declined Rs 19,406.59 crore to Rs 11,05,718.62 crore.

ICICI Bank’s mcap edged lower by Rs 14,663.27 crore to Rs 9,50,345.40 crore and that of Larsen & Toubro diminished by Rs 11,142.62 crore to Rs 5,52,171.88 crore.

However, the valuation of Hindustan Unilever jumped Rs 20,652.91 crore to Rs 5,47,219.80 crore.

The mcap of State Bank of India climbed Rs 19,522.76 crore to Rs 10,16,752.53 crore and that of Bajaj Finance went up by Rs 8,253.64 crore to Rs 5,73,690.81 crore.

Reliance Industries remained the most-valued domestic firm followed by HDFC Bank, Bharti Airtel, State Bank of India, ICICI Bank, TCS, Bajaj Finance, Larsen & Toubro, Hindustan Unilever, and LIC.

Bank stocks jumped on Tuesday, with AU Small Finance Bank, HDFC Bank, SBI and Yes Bank rising up to 4%. The gains pushed Nifty Bank higher by over 1%, making it one of the top sectoral performers today.

The Nifty Bank index jumped to 57,242 in the morning, as seen at 10.40 am. Both private and PSU counters gained sharply, with Nifty Private Bank and Nifty PSU Bank indices gaining around 1% each.

AU Small Finance Bank shares were the top gainers on the Nifty Bank index, gaining more than 4% to hit a fresh 52-week high of Rs 1,042.10 apiece. This comes after the lender announced that its board of directors will meet on April 27 to consider and approve Q4 results, dividend and fundraising through QIP or other methods.

ICICI Bank, Federal Bank, Axis Bank, Union Bank of India, IDFC First Bank, Canara Bank, IndusInd Bank and HDFC Bank shares gained more than 1% each, while Punjab National Bank (PNB) and Bank of Baroda shares gained nearly 1% each. Kotak Mahindra Bank, Yes Bank and State Bank of India shares were up around 0.5%.

Nifty Bank levels to watch out for

Osho Krishan, Chief Manager of Technical & Derivative Research at Angle One, sees Nifty Bank finding resistance at 57,000 and then at 57,300 on the upside. On the downside, however, he sees the index finding support at 56,000 and then at 55,700.

“The index formed a high wave candlestick pattern with a higher high and a higher low signalling consolidation around the 200-day EMA. Going ahead, index sustaining above last Wednesday gap up area of 55600 will keep the bias positive and will gradually open upside towards 57,800 levels in the coming sessions, being the previous breakdown area and key retracement of previous decline,” said Bajaj Broking.

The domestic brokerage, however, cautioned that volatility is likely to remain high on account of the geopolitical tensions and volatile crude oil prices. “From a short – term perspective, support is placed in the range of 54,500 –54,000 zone, being the confluence of the last week’s low and the 20 – day EMA. Forming higher high and higher low in the weekly chart will keep the current pullback trend intact,” it added.

During the weekend, HDFC Bank reported a net profit of Rs 19,221 crore for the March quarter, registering a 9% increase from Rs 17,616 crore in the same period last year. ICICI Bank reported a net profit of Rs 13,702 crore in the fourth quarter of FY26, marking an increase of 8.5% year-on-year from Rs 12,630 crore reported in the same quarter last year. The company’s net interest income stood at Rs 22,979 crore, higher by 8.4% year-on-year.

Also read: Nifty bears regret not buying the dip. Will Trump hand them a second chance?

Yes Bank reported a 45% year-on-year surge in net profit to Rs 1,068 crore for the January-March quarter of FY26, although brokerages continue to remain cautious. The company on Saturday reported a 16% YoY rise in net interest income to Rs 2,638 crore for the quarter under review.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The combined market valuation of eight of the top-10 most valued firms surged by Rs 1,87,497.45 crore in a holiday-shortened last week, with Bharti Airtel emerging as the biggest gainer, in line with a positive trend in equities.

Last week, the BSE benchmark Sensex jumped 943.29 points or 1.21 per cent, and the NSE Nifty climbed 302.95 points or 1.25 per cent.

“Markets ended the truncated week with notable gains, extending their uptrend for the second consecutive week, supported by easing geopolitical tensions and improving risk sentiment. Optimism surrounding a potential US-Iran peace agreement underpinned market confidence, while stable domestic fundamentals further aided momentum,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said.

The market valuation of Bharti Airtel jumped Rs 58,831.52 crore to Rs 11,25,125.21 crore, the most among the top-10 firms.

The valuation of Life Insurance Corporation of India (LIC) surged Rs 27,608.62 crore to Rs 5,32,691.31 crore.

Tata Consultancy Services (TCS) added Rs 20,731.64 crore, taking its market valuation to Rs 9,34,063.56 crore.

The market capitalisation (mcap) of Reliance Industries rallied by Rs 20,231.05 crore to Rs 18,47,317.84 crore and that of Larsen & Toubro climbed Rs 18,577.91 crore to Rs 5,63,314.50 crore.ICICI Bank’s mcap edged higher by Rs 18,266.82 crore to Rs 9,65,008.67 crore.

The valuation of State Bank of India went up by Rs 12,599.79 crore to Rs 9,97,229.77 crore and that of Infosys went by Rs 10,650.1 crore to Rs 5,34,774.50 crore.

However, mcap of HDFC Bank dropped by Rs 16,163.04 crore to Rs 12,31,315.53 crore.

The market valuation of Bajaj Finance diminished by Rs 9,769.3 crore to Rs 5,65,437.17 crore.

Reliance Industries remained the most valued firm followed by HDFC Bank, Bharti Airtel, State Bank of India, ICICI Bank, TCS, Bajaj Finance, Larsen & Toubro, Infosys, LIC.

ICICI Bank reported a 9% year on year increase in net profit in the quarter ended March 2026 mainly due to stable loan growth and net interest margin (NIM). Net profit increased to Rs 13,702 crore in the quarter ended March 2026 from Rs 12,630 crore also helped by a sharp drop in provisions.

Total advances increased by 16% year-on-year to Rs 15.53 lakh crore at the end of March 2026 led by a 24% growth in business banking and a 26% growth in the rural loan portfolio. Retail loans which constitute 50% of the loan book grew by 10% while corporate loans grew by 9% year on year.

NIM was little changed at 4.32% for the year ended March 2026. Net interest income (NII) or the difference between interest earned on loans and that paid for deposits, increased by 8% to Rs 22,979 crore in March 2026 from Rs 21,193 crore a year ago.

Executive director Sandeep Batra said the bank is monitoring the situation particularly due to the geopolitical uncertainties and will continue to focus on getting a higher wallet share of high quality customers.

A sharp drop in provisions contributed to the bank’s profit growth during the quarter. Provisions fell 90% to Rs 96 crore from Rs 891 crore a year ago. Batra said the large year on year fall in provisions reflected strong asset quality and healthy recoveries from the corporate book.

“Our credit costs normalised for agriculture book is under 50 basis points which is very healthy in the current environment. There were also some corporate recoveries from written off accounts during the quarter which helped,” Batra said.

Asset quality remianed stable with net NPA ratio at 0.33% on March 31, 2026 down from 0.39% a year ago. Recoveries and upgrades of NPAs, excluding write-offs and sale, were Rs 3,068 crore compared to Rs 3,817 crore a year ago. The provisioning coverage ratio on non-performing loans was 76% at the end of March 2026.As of March 2026, the bank holds contingency provision of Rs 13,100 crore and additional standard asset provision of Rs 1,283 crore made in the third quarter on Reserve Bank directions in respect of the agricultural priority sector portfolio.

Fee income increased 8% to Rs 6,779 crore in March 2026 from Rs 6,306 crore a year ago with fees from retail, rural and business banking customers constituting about 78% of total fees during the quarter.

The bank suffered a treasury loss of Rs 106 crore during the quarter reflecting the RBI restrictions of non deliverable forwards and also the sharp rise in bond yields during the month of March. The bank had reported a treasury gain of Rs 239 crore a year ago. The bank’s board has recommended a dividend of Rs 12 per share for FY2026.

ICICI Bank, one of India’s leading private lenders, on Saturday reported a net profit of Rs 13,702 crore in the fourth quarter of FY26, marking an increase of 8.5% year-on-year from Rs 12,630 crore reported in the same quarter last year.

The company’s net interest income stood at Rs 22,979 crore, higher by 8.4% from the Rs 21,193 crore posted in the corresponding quarter of the previous financial year, ICICI Bank said in a regulatory filing.

Alongside results, the board has recommended a dividend of Rs 12 per share in line with applicable guidelines. The payout remains subject to necessary approvals, with record and book closure dates to be announced in due course.

The company’s provisions witnessed a notable decline of 89% to Rs 96 crore, sharply lower from Rs 891 crore in the same quarter last year. Provisions in the previous quarter came in at Rs 2,556 crore.

The bank’s asset quality improved sequentially, with gross NPA easing to 1.4% from 1.53% in the previous quarter. In absolute terms, gross NPAs declined to Rs 23,051.9 crore from Rs 23,758 crore earlier.

ICICI Bank’s total advances rose 15.8% year-on-year and 6% sequentially to Rs 15.53 lakh crore, reflecting steady credit growth.

ICICI Bank’s net NPA (NNPA) eased to 0.33% from 0.37% in the previous quarter.On a consolidated basis, profit after tax rose to Rs 14,755 crore during the quarter under review, higher from Rs 13,502 crore in Q4FY25.

Consolidated assets increased 10.3% year-on-year to Rs 29.14 lakh crore as of March 31, 2026, compared to Rs 26.42 lakh crore as of March 31, 2025.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

India’s banking sector ended FY26 on a robust note, with systemic credit growth accelerating to 16.1% year-on-year as of March-end, reflecting sustained demand across segments. Notably, the final fortnight of the fiscal saw a sharp pickup, with incremental credit addition of nearly INR6 trillion, underscoring a strong finish to the year.

On the liability side, deposit growth also witnessed a meaningful surge, rising to 13.5% YoY compared to 10.8% in the preceding fortnight. The system added approximately INR12 trillion in deposits in the last two weeks of March alone, indicating an aggressive mobilization push by banks to support balance sheet expansion. Despite this improvement, the gap between credit and deposit growth remains elevated at 2.6%, though it has moderated from earlier levels.

This easing is reflected in key liquidity indicators. The system-level loan-to-deposit ratio (LDR) declined to 81.4% from 83% in the prior fortnight, while incremental LDR dropped sharply to 81% from 101%, marking one of the lowest levels since August 2025. The moderation suggests some relief in funding pressures, albeit within a still tight liquidity environment.

Banks have increasingly relied on wholesale funding avenues to bridge the gap. Certificate of Deposit (CD) issuances rose to INR14.3 trillion in FY26, up from INR11.7 trillion in FY25, with nearly 30% of issuances concentrated in February and March. Notably, peak CD rates touched 8.2% in March despite a lower policy repo rate of 5.25%, highlighting persistent tightness in system liquidity and elevated marginal cost of funds.

Structurally, regulatory frameworks such as Liquidity Coverage Ratio ad Net Stable Funding Ratio optimization offer headroom for balance sheet expansion, with potential for further improvement in credit-deposit ratios. This, coupled with strong second-half momentum, positions the sector for sustained growth.

Looking ahead, the sector is expected to maintain a steady growth trajectory, with credit growth projected at a 14% CAGR over FY27–28. However, the interplay between deposit mobilization, funding costs, and liquidity conditions will remain critical. While demand-side fundamentals remain intact, the ability of banks to efficiently manage liabilities will be key to sustaining margins and supporting future growth.

AU Small Finance Bank: Buy| Target Rs 1250

AU Small Finance Bank is actively pursuing a universal banking licence, which would significantly expand its liability franchise, reduce cost of funds, and unlock access to a much larger customer base. This transition, if successful, would re-rate the bank meaningfully, positioning it closer to established private sector peers in terms of valuation and business scale. AU SFB’s core strength lies in serving the underbanked and MSME segments across Rajasthan, Gujarat, and tier 2-3 markets; a space with decades of growth ahead. As financial inclusion deepens and credit penetration rises in these geographies, AU is structurally positioned to compound its loan book at a healthy 25-30% CAGR over the long term. Unlike most small finance banks, AU has demonstrated an exceptional ability to build a retail deposit base; a critical differentiator for long-term sustainability.

ICICI Bank: Buy| Target Rs 1750

ICICI Bank continues to deliver a well-rounded performance, supported by improving loan growth, a strong liability franchise and resilient asset quality. Growth remains well diversified, with SME and business banking expected to sustain high-teen expansion, supported by improving demand conditions and a healthy enquiry pipeline. We estimate the loan book to grow at ~16% CAGR over FY26–28.On the liabilities front, the bank maintains a stable and granular deposit base, with deposits growing ~9% YoY and CASA ratios holding steady at ~40–41%. Asset quality remains a core strength, with strong underwriting and adequate provision buffers ensuring stability. Credit costs are expected to remain contained at ~45–50 bps, while GNPA/NNPA ratios are likely to improve further. Overall, ICICI Bank is well positioned to deliver steady earnings growth, with PPoP/PAT CAGR of ~18%/16% over FY26–28, supporting RoA/RoE of ~2.3%/16.4%.

(The author is Siddhartha Khemka, Head of Research – Wealth Management, Motilal Oswal Financial Services)

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)