Synopsis:- Banking stocks remained under pressure despite steady Q4FY26 updates, with declines of up to 4.8%. Business growth ranged between 13%–17%, while advances rose as much as 20%. CASA trends were mixed, indicating deposit pressure, even as overall balance sheets showed stable expansion across institutions.
The Sensex was down 1,397.66 points or 1.91 percent at 71,736.66, and the Nifty was down 440.40 points or 1.94 per cent at 22,239. About 911 shares advanced, 2615 shares declined, and 155 shares unchanged.
Indian Bank
Indian Bank is a leading public sector bank in India, offering a wide range of banking and financial services. With a strong nationwide presence, it serves retail, corporate, and MSME customers. The bank focuses on digital transformation, asset quality improvement, and expanding credit growth while maintaining a stable deposit base.
With a market capitalisation of Rs 1,14,553 crore, the shares were trading at Rs 853 per share, decreasing around 4.24 percent as compared to the previous closing price.
The company reported a healthy Q4FY2026 business update, with total business rising 13.1% to ₹14.98 lakh crore. Gross advances grew 13.6%, reflecting strong credit demand, while deposits increased 12.6%. However, the CASA ratio slightly declined to 39.86%, indicating some pressure on low-cost deposits despite overall steady balance sheet growth and business momentum.
Karnataka Bank
Karnataka Bank is a private sector bank headquartered in Mangaluru, known for its strong regional presence in South India. It provides retail and corporate banking services, with growing emphasis on digital banking solutions. The bank continues to focus on improving asset quality, enhancing profitability, and expanding its customer base.
With a market capitalisation of Rs 8,284 crore, the shares were trading at Rs 219 per share, decreasing around 4.88 percent as compared to the previous closing price.
Karnataka Bank reported a steady Q4FY2026 performance, with total deposits rising 3.8% to ₹1.08 lakh crore. Gross advances grew 6.9% to ₹83,337 crore, indicating moderate credit growth. Moreover, the CASA ratio improved by 190 bps to 33.65%, while CASA deposits increased 10%, reflecting a stronger deposit mix and improving operational stability.
Tamilnad Mercantile Bank
Tamilnad Mercantile Bank is a well-established private sector bank with deep roots in Tamil Nadu. It primarily caters to MSMEs, traders, and retail customers. Known for its consistent financial performance, the bank focuses on maintaining strong asset quality, improving margins, and leveraging technology to enhance customer experience.
With a market capitalisation of Rs 9,501 crore, the shares were trading at Rs 600 per share, decreasing around 1.03 percent as compared to the previous closing price.
Tamilnad Mercantile Bank reported a strong Q4FY2026 update, with total business growing 17.37% to ₹1.15 lakh crore. Advances surged 20.32% to ₹53,380 crore, reflecting robust credit demand. Moreover, deposits rose 14.94%, while CASA increased 22.35%, indicating improved deposit quality and a healthy balance sheet, supporting sustained growth momentum.
South Indian Bank
South Indian Bank is one of the oldest private sector banks in India, headquartered in Kerala. It offers a comprehensive range of banking services across retail, corporate, and digital segments. The bank is undergoing transformation with a focus on improving asset quality, strengthening governance, and accelerating growth through digital initiatives.
With a market capitalisation of Rs 9,292 crore, the shares were trading at Rs 35.5 per share, decreasing around 2.34 percent as compared to the previous closing price.
South Indian Bank reported a strong Q4FY26 business update, with gross advances rising 15.66% to ₹1.01 lakh crore, indicating healthy credit growth. Moreover, total deposits grew 14.71% to ₹1.23 lakh crore. CASA ratio improved by 75 bps to 32.12%, while CASA deposits increased 17.47%, reflecting better deposit mix and improving operational strength.
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