- HDFC Bank and Axis Bank, two of the largest private-sector lenders in India, faced steep losses as concerns rose over contracting net interest margins, a critical profitability metric.
- The sell-off has pushed HDFC Bank's stock down more than 35% in 2026, reaching its lowest valuation levels since August 2020.
- The IMF recently lowered its GDP growth forecast for India for the 2026/2027 fiscal year by 10 basis points to 6.4%, citing higher oil prices and a weaker monsoon forecast.
Quotes
“HDFC Bank (HDB)and Axis Bank, two of India's largest private-sector banks, both posted steep losses on Monday amid concerns about contracting NIMs (net interest margins), a key profitability metric in the banking industry.”
“Due to higher oil prices resulting from the war in the Middle East, combined with less forecasted rain in the upcoming monsoon season, which will negatively affect the agriculture industry, the IMF has lowered India's GDP growth in 2026/2027 by 10 basis points to 6.4%.”