Bank Stocks Face Significant Declines, SBI and HDFC Bank Remain Strong Picks

Q: Which bank stock declined the most in the last quarter?

IDFC First Bank declined the most, plunging **32%**.

Q: How did State Bank of India perform compared to other banks?

State Bank of India was the most resilient, with only a **1%** decline.

Original: Q4 impact: Bank stocks slump up to 32% in 3 months, but brokerages bet on SBI, HDFC Bank, 6 more stocks. Check why

The Economic Times•Apr 3, 20261 min

In a Nutshell

In the last quarter, bank stocks faced steep declines, with IDFC First Bank dropping 32% and HDFC Bank falling 27%. Despite this downturn, brokerages are optimistic about State Bank of India and HDFC Bank, among others, indicating potential recovery in the sector.

Key Points

01IDFC First Bank saw the largest decline, plummeting 32%.
02HDFC Bank and YES Bank fell 27% and 22%, respectively.
03Public sector banks like Canara Bank and Bank of Baroda dropped 20% each.
04State Bank of India was the most resilient, only declining 1%.
05Brokerages are betting on a rebound for SBI and HDFC Bank despite the overall downturn.

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Full Summary

In the last three months, bank stocks have experienced significant declines, with the benchmark index falling 16%. IDFC First Bank led the downturn, plummeting 32%, followed closely by HDFC Bank at 27% and YES Bank at 22%. Public sector banks, including Canara Bank and Bank of Baroda, also faced declines of 20% each. Mid-tier banks like Punjab National Bank dropped 19%, while IndusInd Bank and AU Small Finance Bank fell 16% each. Even larger banks such as ICICI Bank and Axis Bank recorded losses of 12% and 8%, respectively. Despite these challenges, brokerages remain optimistic about certain stocks, particularly State Bank of India, which only saw a 1% decline, and HDFC Bank, suggesting these may be strong picks moving forward.

Key Figures

32%

Decline of IDFC First Bank

27%

Decline of HDFC Bank

20%

Decline of Canara Bank and Bank of Baroda

1%

Decline of State Bank of India

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Why It Matters

The decline in bank stocks could affect investor confidence and impact loan rates for consumers. If banks struggle, borrowers may face higher interest rates or stricter lending criteria.

Who is affected

Investors and potential borrowers.

What to know

Investors should reassess their portfolios, and borrowers should stay informed about potential changes in loan rates.

FAQ

IDFC First Bank declined the most, plunging 32%.

State Bank of India was the most resilient, with only a 1% decline.

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