Bank Stocks Jump 28% in April; HDFC Bank, ICICI Bank Lead the Rally

Indian banking stocks gained for the fifth consecutive trading session on April 21, Monday, as all the constituents of the Nifty Bank index traded in green. Leading banking majors including HDFC Bank and ICICI Bank reported strong Q4 numbers, thereby beating street estimates.

Shares of HDFC Bank surged by 2.3% to clock at an all-time-high of ₹1,950 apiece gaining 5.6% in April. ICICI Bank shares soared at an all-time-high of ₹1,436 apiece, rising 2.1%.

Brokerages raised their target prices on both the stocks, further boosting overall sentiment in the banking space. The positive outlook also spread to other banking stocks as shares of IndusInd Bank jumped by 4.6% in the day's session, clocking monthly gain to 28%.

Axis Bank shares surged by 4% in today’s trading session, while gaining 12% in April. Other private lenders including IDFC First Bank, Kotak Mahindra Bank, and Federal Bank have surged by 21%, 6.37%, and 4.52%, respectively, in April so far. Shares of public sector banks also reported gains of up to 11.5%, which included the State Bank of India, Bank of Baroda, Punjab National Bank, and Canara Bank.

Nifty and Sensex extended their gains in April, soaring about 3% each this month.

Nifty Bank performance

Though Nifty and Sensex are still below their all-time-highs, the Nifty Bank index clocked its record high during today’s trading session crossing the 55,000 mark for the first time. The index climbed 2.2% to hit a new all-time high of 55,461 points, gaining nearly 8% in April.

The Nifty Bank index has increased by 7,302 points, or 15.3% from its February low of 48,078, leaving both Nifty 50 and Sensex behind, gaining nearly 10% during the same period.

Analysts now expect an uptick within the banking system on the back of consecutive rate cuts by RBI and increase in the income tax exemption limit to ₹12 lakh in the Union Budget 2025–26.

Crisil, a domestic rating agency, estimated the bank credit growth up to 13% in FY26 from 11% in FY25. The growth is driven by recent regulatory measures, tax cuts and a cooler interest rate environment.

However, the agency also factored in the ongoing global tariff wars, which could make companies more cautious about borrowing.