{"id":286412,"date":"2026-10-05T11:22:35","date_gmt":"2026-10-05T05:52:35","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=286412"},"modified":"2026-10-05T11:22:35","modified_gmt":"2026-10-05T05:52:35","slug":"bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/","title":{"rendered":"Bank Stocks Jump: Why YES Bank, HDFC Bank and AU Small Finance Bank Rallied After Q2 Business Updates, What FCNR(B) Deposits Hide and Why Gains Faded to Profit Booking"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>Nifty Bank hit 55,192.65 (+1.4%) on 5 Oct. YES Bank Rs 21.09 (+1.9%), AU SFB about Rs 1,016, HDFC Bank Rs 734.20 (+1.8%). Some gains faded on profit booking.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">Bank stocks jumped on 5 October after Q2 business updates, with the Nifty Bank index touching 55,192.65, up 1.4%, as YES Bank, HDFC Bank, AU Small Finance Bank and PNB gained up to 3%. YES Bank reported loans up 23.8% and deposits up 19.5%, AU SFB deposits up 28.6% and HDFC Bank deposits up 18.8%. Part of the headline growth came from foreign-currency FCNR(B) deposits, which make up about 3.3% of HDFC Bank&#8217;s deposits, so underlying growth is lower than the headline. Some stocks slipped into the red later on profit booking, which shows investors want formal Q2 results to confirm margins.<\/p>\n<\/p><\/div>\n<p>Bank stocks led the 5 October rebound, but the details behind the headline numbers matter. The Nifty Bank index rose 1.4% to an intraday high of 55,192.65, and early in the session all 14 constituents were in the green, with YES Bank, HDFC Bank, AU Small Finance Bank and Punjab National Bank gaining up to 3%. The YES Bank share price, the HDFC Bank share price and the AU Small Finance Bank share price all rose.<\/p>\n<p>If you are searching for why bank stocks are rising, this article covers the Q2 business updates from YES Bank, HDFC Bank and AU Small Finance Bank, what FCNR(B) deposits do to growth numbers, CASA trends, Nomura&#8217;s top picks including Kotak Mahindra Bank, ICICI Bank and Axis Bank, normalised deposit and CASA figures, why some gains faded on profit booking and the levels to watch. Data is from bank filings and market reports, so recheck it before acting.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&#038;utm_medium=bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\">Click Here &#8211; Get Free Investment Predictions<\/a><\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#Why_Are_Bank_Stocks_Jumping_Today\" title=\"Why Are Bank Stocks Jumping Today?\">Why Are Bank Stocks Jumping Today?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#YES_Bank_Share_Price_Loans_and_Deposits_Beat_but_CASA_Slipped\" title=\"YES Bank Share Price: Loans and Deposits Beat, but CASA Slipped\">YES Bank Share Price: Loans and Deposits Beat, but CASA Slipped<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#HDFC_Bank_Share_Price_New_CEO_and_a_Strong_Update_With_an_FCNRB_Caveat\" title=\"HDFC Bank Share Price: New CEO and a Strong Update, With an FCNR(B) Caveat\">HDFC Bank Share Price: New CEO and a Strong Update, With an FCNR(B) Caveat<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#AU_Small_Finance_Bank_Share_Price_The_Fastest_Growth_of_the_Three\" title=\"AU Small Finance Bank Share Price: The Fastest Growth of the Three\">AU Small Finance Bank Share Price: The Fastest Growth of the Three<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#What_FCNRB_Deposits_Mean_for_Bank_Stocks\" title=\"What FCNR(B) Deposits Mean for Bank Stocks\">What FCNR(B) Deposits Mean for Bank Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#Why_Bank_Stocks_Slipped_on_Profit_Booking\" title=\"Why Bank Stocks Slipped on Profit Booking\">Why Bank Stocks Slipped on Profit Booking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#Bank_Stocks_Today_Nomuras_Top_Picks_and_Levels\" title=\"Bank Stocks Today: Nomura&#8217;s Top Picks and Levels\">Bank Stocks Today: Nomura&#8217;s Top Picks and Levels<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#Risks_Behind_the_Rally_in_Bank_Stocks\" title=\"Risks Behind the Rally in Bank Stocks\">Risks Behind the Rally in Bank Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#What_Should_Investors_Watch_Next_in_Bank_Stocks\" title=\"What Should Investors Watch Next in Bank Stocks?\">What Should Investors Watch Next in Bank Stocks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#Why_are_bank_stocks_rising_today\" title=\"Why are bank stocks rising today?\">Why are bank stocks rising today?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#What_did_YES_Bank_report_in_its_Q2_FY27_update\" title=\"What did YES Bank report in its Q2 FY27 update?\">What did YES Bank report in its Q2 FY27 update?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#How_did_AU_Small_Finance_Bank_perform_in_Q2_FY27\" title=\"How did AU Small Finance Bank perform in Q2 FY27?\">How did AU Small Finance Bank perform in Q2 FY27?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#What_are_FCNRB_deposits\" title=\"What are FCNR(B) deposits?\">What are FCNR(B) deposits?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#How_much_did_FCNRB_boost_HDFC_Banks_numbers\" title=\"How much did FCNR(B) boost HDFC Bank&#8217;s numbers?\">How much did FCNR(B) boost HDFC Bank&#8217;s numbers?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#Why_did_some_bank_stocks_fall_after_the_early_jump\" title=\"Why did some bank stocks fall after the early jump?\">Why did some bank stocks fall after the early jump?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#Which_banks_does_Nomura_prefer_before_Q2_results\" title=\"Which banks does Nomura prefer before Q2 results?\">Which banks does Nomura prefer before Q2 results?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/univest.in\/blogs-2\/bank-stocks-yes-bank-hdfc-bank-au-sfb-q2-updates\/#Are_bank_stocks_a_good_buy_after_the_rally\" title=\"Are bank stocks a good buy after the rally?\">Are bank stocks a good buy after the rally?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Why_Are_Bank_Stocks_Jumping_Today\"><\/span><strong>Why Are Bank Stocks Jumping Today?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Q2 business updates showed double-digit loan and deposit growth at private and public sector banks.<\/li>\n<li>Weak US jobs data cut Fed hike odds, which supports emerging-market financials.<\/li>\n<li>The rupee opened stronger at 96.20 and crude oil eased, which helped sentiment toward lenders.<\/li>\n<\/ol>\n<p>Quarterly business updates arrive about four weeks before formal results, so they work as an early read on growth for bank stocks. Hopes of better results ahead helped bank stocks across the board, with Federal Bank, Bank of Baroda, IDFC First Bank and Canara Bank adding 1.4% to 1.9%, while ICICI Bank, Kotak Mahindra Bank and Axis Bank were also among the early gainers.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"YES_Bank_Share_Price_Loans_and_Deposits_Beat_but_CASA_Slipped\"><\/span><strong>YES Bank Share Price: Loans and Deposits Beat, but CASA Slipped<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">YES Bank Q2 FY27 metric<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Figure<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Change<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Loans and advances<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 3,09,675 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 23.8% year on year, up 8.6% quarter on quarter<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Total deposits<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 3,54,084 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 19.5% year on year, up 12.3% quarter on quarter<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Reported CASA ratio<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">30.0%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Down from 33.7% a year earlier<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Normalised CASA ratio<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">31.7%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Excludes FCNR(B) deposits<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Credit-deposit ratio, normalised<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">83.2%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Healthy liquidity<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Q1 FY27 net profit<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 1,071 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 34% year on year<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Share price<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 21.09 to Rs 21.17<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up about 1.9% to 2.0% from Rs 20.70<\/td>\n<\/tr>\n<\/table>\n<p>The YES Bank share price rose about 2% as advances crossed Rs 3 lakh crore for the first time. The weak spot is the CASA ratio, which fell about 3.7 percentage points on a reported basis, so the deposit mix is costlier. At about Rs 65,000 crore of market capitalisation, a P\/E near 17 and a price to book of about 1.24, the stock is valued as a recovery story and not a premium franchise among bank stocks.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href=\"https:\/\/univest.in\/screeners\">Check the Univest Screener for live data on bank stocks<\/a><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"HDFC_Bank_Share_Price_New_CEO_and_a_Strong_Update_With_an_FCNRB_Caveat\"><\/span><strong>HDFC Bank Share Price: New CEO and a Strong Update, With an FCNR(B) Caveat<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The HDFC Bank share price rose about 1.8% to Rs 734.20 after the RBI approved Anup Bagchi as the next CEO and the bank reported period-end gross advances of Rs 32.20 lakh crore, up 16.3%, and deposits of Rs 33.28 lakh crore, up 18.8%. Average CASA deposits grew 10.7%, well below time deposits at 19.7%.<\/p>\n<p>Growth was boosted by about $11.5 billion of FCNR(B) deposits, of which $5.7 billion was lent onward. These make up about 3.3% of deposits and 1.7% of loans. Stripping them out, growth would be roughly 14.8% for deposits and 14.3% for loans, my calculation assuming the balance did not exist a year ago. The quality of growth matters for all bank stocks.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"AU_Small_Finance_Bank_Share_Price_The_Fastest_Growth_of_the_Three\"><\/span><strong>AU Small Finance Bank Share Price: The Fastest Growth of the Three<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">AU Small Finance Bank Q2 FY27<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Figure<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Change<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Total deposits<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 1,70,460 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 28.6% year on year<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">CASA deposits<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Not shown<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 29.1% year on year<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Gross advances<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 1,50,290 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 27.9% year on year, up 7% quarter on quarter<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Gross loan portfolio<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 1,53,770 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 25.1% year on year<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Share price<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 1,016 early on 5 October<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up about 2.9% from Rs 987<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">52-week range<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 719.05 to Rs 1,144.10<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 11% below the high<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Market capitalisation<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 74,160 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Mid-cap<\/td>\n<\/tr>\n<\/table>\n<p>The AU Small Finance Bank share price has the cleanest story among bank stocks, with deposits and CASA both growing about 29% and no FCNR(B) distortion in the numbers cited. Its trailing P\/E is about 26, and analyst targets on one data provider range from Rs 800 to Rs 1,285 with an average near Rs 1,121. Formal results are reportedly due around 17 October.<\/p>\n<p style=\"margin-top:24px;\"><em>Download the <a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&#038;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track live prices of bank stocks and the Nifty Bank index.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_FCNRB_Deposits_Mean_for_Bank_Stocks\"><\/span><strong>What FCNR(B) Deposits Mean for Bank Stocks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>FCNR(B) deposits are foreign-currency deposits placed by non-resident Indians. When banks raise them in size, reported deposits and often foreign-currency loans jump, which flatters headline growth. They are not the same as domestic CASA, which is the lowest-cost and stickiest funding.<\/p>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Measure<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Headline<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Adjusted view<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">HDFC Bank deposit growth<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">18.8%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 14.8% without FCNR(B), my calculation<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">HDFC Bank loan growth<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">16.3%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 14.3% without FCNR(B), my calculation<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">YES Bank CASA ratio<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">30.0%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">31.7% normalised<\/td>\n<\/tr>\n<\/table>\n<p>Analysts therefore look at normalised numbers, and YES Bank itself says its normalised metrics show steadier growth across bank stocks. The lesson for bank stocks is to read the mix and not just the total.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Bank_Stocks_Slipped_on_Profit_Booking\"><\/span><strong>Why Bank Stocks Slipped on Profit Booking<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After the early jump, some bank stocks slipped into the red as traders booked profits. That is normal for bank stocks after a sharp one-session rally that follows an eight-week market fall. It also shows that a business update is a preview, and formal Q2 results will decide whether margins hold.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bank_Stocks_Today_Nomuras_Top_Picks_and_Levels\"><\/span><strong>Bank Stocks Today: Nomura&#8217;s Top Picks and Levels<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Nomura named HDFC Bank, Kotak Mahindra Bank and ICICI Bank as its top picks among large banks, and IDFC First Bank and IndusInd Bank among mid-tier lenders, ahead of the Q2 season.<\/p>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Level<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Why it matters<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">55,192.65<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Nifty Bank intraday high on 5 October<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">54,450.75<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Nifty Bank close on 1 October, base for the rally<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">53,693<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Pivot-based support<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 1,144.10<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">AU Small Finance Bank 52-week high<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 987<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">AU Small Finance Bank close on 1 October<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 20.70<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">YES Bank close on 1 October<\/td>\n<\/tr>\n<\/table>\n<p>These are reference levels for bank stocks, not forecasts.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Risks_Behind_the_Rally_in_Bank_Stocks\"><\/span><strong>Risks Behind the Rally in Bank Stocks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Deposit mix:<\/strong> A falling CASA ratio, as at YES Bank, raises funding costs and can squeeze margins for bank stocks.<\/p>\n<p><strong>FCNR(B) distortion:<\/strong> Headline growth overstates underlying growth at some lenders.<\/p>\n<p><strong>RBI decision:<\/strong> A rate hike on 7 October is expected, but hawkish guidance could hurt bank stocks.<\/p>\n<p><strong>Foreign selling:<\/strong> FIIs sold over Rs 9,400 crore on 1 October, and banks carry heavy index weights.<\/p>\n<p><strong>Profit booking:<\/strong> A rally of one session can reverse if formal results disappoint.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Should_Investors_Watch_Next_in_Bank_Stocks\"><\/span><strong>What Should Investors Watch Next in Bank Stocks?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>The RBI policy decision and guidance on 7 October.<\/li>\n<li>Formal Q2 results, starting with the larger private banks in mid-October.<\/li>\n<li>Net interest margin and CASA ratios, which show funding costs.<\/li>\n<li>Whether FCNR(B) balances stay or run off.<\/li>\n<li>FII flow data and the rupee.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bank stocks jumped on 5 October as YES Bank, HDFC Bank and AU Small Finance Bank reported strong Q2 business updates, but part of the growth is FCNR(B), YES Bank&#8217;s CASA ratio fell and some gains faded on profit booking. AU Small Finance Bank has the cleanest growth, HDFC Bank has a new CEO and a mixed deposit mix, and YES Bank is valued as a recovery. Formal results and the RBI decision are next. Consult a SEBI-registered advisor before making any decision.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/p><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Why_are_bank_stocks_rising_today\"><\/span><strong>Why are bank stocks rising today?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Bank stocks rose on 5 October after Q2 business updates from YES Bank, HDFC Bank, AU Small Finance Bank and PSU banks showed strong loan and deposit growth. Weak US jobs data and a stronger rupee also helped.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_did_YES_Bank_report_in_its_Q2_FY27_update\"><\/span><strong>What did YES Bank report in its Q2 FY27 update?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> YES Bank reported loans up 23.8% to Rs 3,09,675 crore and deposits up 19.5% to Rs 3,54,084 crore. The reported CASA ratio fell to 30.0% from 33.7%, and the YES Bank share price rose about 2%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_did_AU_Small_Finance_Bank_perform_in_Q2_FY27\"><\/span><strong>How did AU Small Finance Bank perform in Q2 FY27?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Deposits rose 28.6% to Rs 1,70,460 crore, CASA rose 29.1% and gross advances rose 27.9% to Rs 1,50,290 crore, and the AU Small Finance Bank share price rose about 2.9% early on 5 October.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_FCNRB_deposits\"><\/span><strong>What are FCNR(B) deposits?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> FCNR(B) deposits are foreign-currency deposits placed by non-resident Indians. Large inflows lift reported deposit growth but are not the same as domestic CASA funding.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_much_did_FCNRB_boost_HDFC_Banks_numbers\"><\/span><strong>How much did FCNR(B) boost HDFC Bank&#8217;s numbers?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> About $11.5 billion of FCNR(B) deposits, around 3.3% of deposits and 1.7% of loans. Without them, growth would be roughly 14.8% for deposits and 14.3% for loans, by my calculation, which matters for the HDFC Bank share price.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_did_some_bank_stocks_fall_after_the_early_jump\"><\/span><strong>Why did some bank stocks fall after the early jump?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Traders booked profits after a sharp one-day rally in bank stocks. A business update is a preview, so investors wait for formal results to confirm margins.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Which_banks_does_Nomura_prefer_before_Q2_results\"><\/span><strong>Which banks does Nomura prefer before Q2 results?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Nomura lists HDFC Bank, Kotak Mahindra Bank and ICICI Bank as top picks among large banks, and IDFC First Bank and IndusInd Bank among mid-tier lenders.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_bank_stocks_a_good_buy_after_the_rally\"><\/span><strong>Are bank stocks a good buy after the rally?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> This article does not constitute investment advice. Business updates are encouraging, but deposit mix, FCNR(B) effects and the RBI decision are risks. Consult a SEBI-registered financial advisor before investing.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Why are bank stocks rising today?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Bank stocks rose on 5 October after Q2 business updates from YES Bank, HDFC Bank, AU Small Finance Bank and PSU banks showed strong loan and deposit growth. Weak US jobs data and a stronger rupee also helped.\"}},{\"@type\":\"Question\",\"name\":\"What did YES Bank report in its Q2 FY27 update?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"YES Bank reported loans up 23.8% to Rs 3,09,675 crore and deposits up 19.5% to Rs 3,54,084 crore. The reported CASA ratio fell to 30.0% from 33.7%, and the YES Bank share price rose about 2%.\"}},{\"@type\":\"Question\",\"name\":\"How did AU Small Finance Bank perform in Q2 FY27?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Deposits rose 28.6% to Rs 1,70,460 crore, CASA rose 29.1% and gross advances rose 27.9% to Rs 1,50,290 crore, and the AU Small Finance Bank share price rose about 2.9% early on 5 October.\"}},{\"@type\":\"Question\",\"name\":\"What are FCNR(B) deposits?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"FCNR(B) deposits are foreign-currency deposits placed by non-resident Indians. Large inflows lift reported deposit growth but are not the same as domestic CASA funding.\"}},{\"@type\":\"Question\",\"name\":\"How much did FCNR(B) boost HDFC Bank's numbers?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"About $11.5 billion of FCNR(B) deposits, around 3.3% of deposits and 1.7% of loans. Without them, growth would be roughly 14.8% for deposits and 14.3% for loans, by my calculation, which matters for the HDFC Bank share price.\"}},{\"@type\":\"Question\",\"name\":\"Why did some bank stocks fall after the early jump?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Traders booked profits after a sharp one-day rally in bank stocks. A business update is a preview, so investors wait for formal results to confirm margins.\"}},{\"@type\":\"Question\",\"name\":\"Which banks does Nomura prefer before Q2 results?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Nomura lists HDFC Bank, Kotak Mahindra Bank and ICICI Bank as top picks among large banks, and IDFC First Bank and IndusInd Bank among mid-tier lenders.\"}},{\"@type\":\"Question\",\"name\":\"Are bank stocks a good buy after the rally?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"This article does not constitute investment advice. Business updates are encouraging, but deposit mix, FCNR(B) effects and the RBI decision are risks. Consult a SEBI-registered financial advisor before investing.\"}}]}<\/script><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bank stocks jumped on Q2 business updates from YES Bank, HDFC Bank and AU SFB. See the FCNR(B) caveat, deposit quality and why gains faded.<\/p>\n","protected":false},"author":35,"featured_media":286411,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[842],"tags":[2794,1162,8063,208,5607,8053,8062],"class_list":["post-286412","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-au-small-finance-bank","tag-bank-stocks","tag-fcnrb","tag-hdfc-bank","tag-nifty-bank","tag-q2-business-updates","tag-yes-bank"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["286411"],"rank_math_title":["Bank Stocks Today: YES Bank, HDFC Bank, AU SFB Jump on Q2 Updates"],"rank_math_description":["Bank stocks jumped on 5 October as YES Bank, HDFC Bank and AU SFB posted Q2 business updates. See deposit quality, the FCNR(B) effect, profit booking and levels."],"rank_math_focus_keyword":["bank stocks"],"rank_math_robots":["a:2:{i:0;s:7:\"noindex\";i:1;s:8:\"nofollow\";}"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest.in\/blogs-2\/wp-content\/uploads\/2026\/10\/bank-stocks-jump-why-yes-bank-hdfc-bank-and-au-small-finance-bank-rallied-after.webp","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/286412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=286412"}],"version-history":[{"count":1,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/286412\/revisions"}],"predecessor-version":[{"id":286413,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/286412\/revisions\/286413"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/286411"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=286412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=286412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=286412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}