Banking Sector

Indian stock markets ended lower for the third consecutive session on October 22, with the Sensex declining 460 points and the Nifty slipping below 22,700. Media, FMCG, IT and energy stocks led sectoral losses, while rising Brent crude prices and a sell-off across Asian markets added to investor concerns.

Sensex fell 876 points to 73,852.90 and Nifty declined 1.11% to 22,888.95 on October 19, 2026. Banking and IT stocks led losses amid earnings concerns, elevated crude oil prices and foreign investor outflows.

Axis Bank shares dropped as much as 5% after Q2 FY27 net profit rose 38% to ₹7,003 crore. An earnings miss, lower reported NIM, muted fee income and funding concerns weighed on sentiment.

Federal Bank reported a record quarterly net profit of ₹1,386.09 crore in Q2 FY27, up 45.10% year-on-year. Net interest income rose 26.38% to ₹3,153.40 crore, NIM improved to 3.32%, and gross NPA declined to 1.32%, reflecting stronger profitability and improved asset quality.

Yes Bank shares fell 14.53% on October 15 after the Supreme Court reportedly dismissed appeals over the bank's ₹8,415 crore AT1 bond write-off. The stock hit an intraday low of ₹16.96 as investors assessed the potential financial implications.

Canara Bank shares dropped 6.12% to ₹117.12 in early trade after management raised its estimated ECL provision to ₹12,000–15,000 crore. The bank also reported September-quarter treasury losses, despite an 8.4% rise in net profit.

IDBI Bank shares declined in early trade on October 15 after rallying around 9% in the previous session. LIC shares moved higher as investors assessed the proposed ₹52,877 crore stake sale to Fairfax Financial Holdings.

IDBI Bank shares rallied after the Union Cabinet approved the sale of a 60.72% stake to Fairfax’s subsidiary for ₹52,878.08 crore. The transaction remains subject to regulatory requirements.

LIC Housing Finance, Shriram Finance and HDB Financial Services led losses as investors assessed the potential impact of stricter daily CRR maintenance norms on banking liquidity, NBFC borrowing costs and margins.

Canara Bank shares gained 3.44% after the lender reported an 8% rise in Q2 FY27 net profit. Net interest income increased 20%, while asset quality improved year-on-year.