Equity Investment Analysis of Indian Banks: A Comparative Study of HDFC Bank, State Bank of India, ICICI Bank, Axis Bank and Kotak Mahindra Bank

Author

Dhanashree Vilas Virale, Dr. Bhagyashri Patil


Abstract

 This study evaluates the relative investment attractiveness of five major Indian banks: HDFC Bank, State Bank of India (SBI), ICICI Bank, Axis Bank and Kotak Mahindra Bank. The analysis combines a macroeconomic perspective with company-level financial statement analysis and banking-specific performance measures. Audited financial statements, annual reports, investor disclosures and regulatory material were used to examine performance across FY2024–FY2026. The principal indicators considered were Return on Equity (ROE), Net Interest Margin (NIM), Capital Adequacy Ratio (CAR), Gross Non-Performing Asset (GNPA) ratio and selected balance-sheet and cash-flow measures. The study also considers the influence of the interest-rate environment and asset-quality cycle on bank profitability. Prior research indicates that profitability and banking soundness are closely associated with capital adequacy, asset quality, operating efficiency and interest margins [1, 2, 3]. Evidence specific to India also suggests that NIM is shaped by bank-level variables such as CASA deposits, capitalisation and operating costs, together with macroeconomic conditions [4]. The present analysis finds meaningful differences across the selected banks despite an improvement in asset quality across the group. ICICI Bank emerges as the strongest overall performer because its profitability, NIM and asset-quality indicators are comparatively balanced. SBI records the highest ROE in the internship dataset when the reported FY2026 figures are used, although its leverage and lower NIM require contextual interpretation. Kotak Mahindra Bank has the strongest capital position but weaker returns, while HDFC Bank reflects the effects of post-merger normalisation. Axis Bank shows the greatest concentration of adverse movements across profitability, liquidity, NIM and capital indicators. The findings support a differentiated rather than uniform investment view of large Indian banks.



Keywords

Equity Research, Indian Banking Sector, Ratio Analysis, Return on Equity, Net Interest Margin, Capital Adequacy, Non-Performing Assets, Investment Analysis



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References


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