HDFC Bank vs ICICI Bank vs IDFC First Bank vs Yes Bank: Which bank stock to buy after Q2 results 2025?

Shares of HDFC Bank, ICICI Bank, Yes Bank and IDFC Bank saw mixed reactions on Monday after these private lenders announced their Q2 results over the weekend. Among these, IDFC First Bank shares emerged as the top gainers, rising nearly 5%, followed by Yes Bank shares, which gained 2.25%. HDFC Bank’s share price rose over 1.7% to hit a 52-week high, while ICICI Bank’s share price fell as much as 2.57% after the release of Q2 results. Here’s a look at how these banks fared in the quarter ended September 2025: HDFC Bank Q2 Results The country’s largest private lender HDFC Bank reported a standalone net profit of ₹18,641.28 crore, up 10.8% year-on-year, while net interest income (NII) rose 4.5% to ₹131.5 crore. Margins contracted by 10 bps, although asset quality improved sequentially. Loan growth stood at 4.5% QoQ and 10% YoY, helped by lower core credit costs due to a one-off upgrade. ICICI Bank Q2 Results ICICI Bank, India’s second largest private sector bank, posted standalone net profit growth of 5.2% YoY at ₹12,359 crore, while NII grew 7.4% YoY to ₹21,529 crore. NIM stood at 4.30% and asset quality bank improved sequentially. IDFC First Bank Q2 Results IDFC First Bank reported a 75.5% YoY jump in net profit to ₹352.3 crore, with NII up 6.78% YoY to ₹5,113 crore. Margin had limited compression at 4 bps QoQ to 4.3% and asset quality remained healthy. Ja Bank Q2 Results Ja Bank’s net profit increased 18.4% YoY to ₹655 crore and NII rose 4.6% YoY at ₹2,300 crore. While provisions increased during the September quarter, asset quality remained stable. Which bank stock to buy after Q2 results? Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said that IDFC First Bank emerged as the performer in Q2FY26 on a combination of growth and fundamentals, while HDFC Bank maintained its position as the benchmark for stability at scale. Both banks, he said, showed solid performance on growth momentum, margin expansion, asset quality and execution discipline. “From a valuation perspective, HDFC Bank appears to be reasonably priced, supported by its strong franchise, resilient balance sheet and consistent performance within the large-cap private banking universe. Its second-quarter earnings bolster confidence in its deposit and lending franchise as well as non-interest income growth, a notable performance in a tight interest rate environment,” said Tap rate environment said. Meanwhile, he believes Yes Bank remains a high-risk, high-reward turnaround play. “For long-term investors with a higher risk appetite, Yes Bank presents a contrarian opportunity, dependent on management’s ability to sustain asset quality improvement, expand margins and deliver on its digital and retail lending roadmap,” Tapse said. Anand Dama, Senior Analyst at Emkay Global, expects HDFC Bank to exceed system growth in FY27E, while ICICI Bank is well placed to deliver 2.1% – 2.3% RoA over FY26–28E, supported by cost management, fee growth and limited credit costs. Emkay has maintained a Buy rating on both HDFC Bank (target price revised upwards by 7% to ₹1,225) and ICICI Bank (unchanged TP: ₹1,700). For IDFC First Bank, the brokerage maintained an Add rating with a target price of ₹80, noting short-term margin pressure but a likely recovery from H2FY26. For Yes Bank, Emkay reiterated a Sell rating despite raising the target price by 12% to ₹19, citing weak yield metrics and increased provisions. Banking sector outlook When banks perform well, it often reflects that the wider economy is in an optimistic and expansionary phase. “Strong credit growth, rising deposits and improved asset quality generally indicate higher consumer and business confidence, making the overall outlook for markets positive,” Tapse said. Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms, and not of Mint. We advise investors to check with certified experts before making any investment decisions.