Private-sector banks in India experienced a decrease in market capitalization during the July–September quarter (Q2 FY26), as trade uncertainties negatively impacted market sentiment, according to a report released on Monday. In contrast, public-sector banks (PSBs) showed resilience and gained during this period. HDFC Bank saw a reduction of 4.8 percent in its market cap, while ICICI Bank experienced a 6.7 percent decline, based on data from S&P Global Market Intelligence. Both banks had previously recorded gains in the April–June quarter, benefiting from rate cuts and ample liquidity in the banking sector. Other private lenders, including Kotak Mahindra Bank Ltd. and Axis Bank Ltd., also reported market cap decreases in Q2 compared to the previous quarter.
IndusInd Bank was the poorest performer, losing 15.7 percent of its market cap and dropping to the 14th position, following revelations of several accounting irregularities earlier in 2025. Nevertheless, the top seven lenders retained their market cap standings within the Indian market.