SYNOPSIS: Banking stocks, including Canara Bank, Indian Bank, Jammu & Kashmir Bank, South Indian Bank, and Karnataka Bank, gained attention after Q1 FY26 business updates showing strong deposit and loan growth, stable CASA trends, and healthy credit expansion, indicating balanced balance-sheet growth and positive early signals for the upcoming earnings season outlook.
Banking stocks such as Canara Bank, Indian Bank, and Jammu & Kashmir Bank have come into focus after their Q1 business updates, which provided early signals on loan growth, deposit trends, and overall credit demand. Investors are closely tracking these numbers as they often set the tone for sector performance in the upcoming earnings season.
The updates have sparked interest in the broader banking space, with market participants evaluating how well banks are balancing credit expansion with asset quality. Strong or steady business growth in the first quarter is generally seen as a positive indicator for earnings momentum, keeping these stocks active in trading sessions. Here is the list of stocks to look out for:
Canara Bank
Canara Bank reported steady growth in its deposit base on a year-on-year basis for the quarter ended 30 June 2026. Global Deposits increased by 11.7% YoY to Rs. 16.13 lakh crore, while Domestic Deposits rose 10.1% YoY to Rs. 14.73 lakh crore, reflecting consistent expansion in the bank’s funding base across both domestic and international operations.
On the asset side, the bank continued to show strong momentum in credit growth. Global Advances surged 18.0% YoY to Rs. 12.93 lakh crore, while Domestic Advances grew 16.9% YoY to Rs. 12.07 lakh crore. The RAM (Retail, Agriculture, MSME) segment also recorded healthy growth, supporting the overall improvement in the bank’s lending portfolio.
Indian Bank
Indian Bank reported healthy double-digit growth across key business parameters for the quarter ended 30 June 2026, reflecting steady expansion in its balance sheet. Total Business grew 13.6% YoY to Rs. 15.28 lakh crore, supported by 13.3% growth in Total Deposits at Rs. 8.43 lakh crore. Within deposits, SB Deposits rose 12.9% YoY to Rs. 2.70 lakh crore, and CA Deposits increased sharply by 26.3% YoY to Rs. 0.48 lakh crore. The CASA ratio remained broadly stable at 39.64%, indicating sustained low-cost deposit strength.
On the credit side, the bank continued its strong lending momentum with Gross Advances rising 13.9% YoY to Rs. 6.85 lakh crore. The RAM (Retail, Agriculture, MSME) segment grew 14.8% YoY to Rs. 4.17 lakh crore, underscoring continued focus on retail and priority sector lending. Overall, the performance highlights balanced growth across deposits and advances with stable CASA positioning.
Jammu and Kashmir Bank Ltd
Jammu and Kashmir Bank reported strong double-digit growth across key business parameters for the quarter ended 30 June 2026. Total Business increased 20.36% YoY to Rs. 3,03,996 crore, supported by healthy expansion in both deposits and advances. Total Deposits grew 16.75% YoY to Rs. 1,73,420 crore, while CASA Deposits rose 7.48% YoY to Rs. 72,979 crore. However, the CASA ratio moderated by 363 bps YoY to 42.08%, indicating a shift in deposit mix.
On the lending side, Gross Advances recorded robust growth of 25.51% YoY to Rs. 1,30,576 crore, reflecting strong credit demand across segments. Gross Investments also remained stable with a marginal 0.91% YoY increase to Rs. 43,706 crore. Overall, the bank maintained a healthy growth trajectory with strong advances-led expansion during the period.
South Indian Bank Ltd
The South Indian Bank reported steady business growth for the quarter ended 30 June 2026, supported by expansion in both advances and deposits. Gross Advances increased 17.01% YoY to Rs. 1,04,366 crore (or ~18% adjusted for technical write-off impact), while Total Deposits rose 11.39% YoY to Rs. 1,25,786 crore, indicating stable balance sheet growth across core banking operations.
CASA deposits improved 14.61% YoY to Rs. 41,493 crore, with the CASA ratio strengthening to 32.99% from 32.06% in the previous year, reflecting better low-cost deposit mobilisation. Overall, the bank continued to show healthy momentum in its franchise with sustained credit growth and improving CASA mix during the quarter.
Karnataka Bank Ltd
Karnataka Bank reported steady improvement in its key business parameters for the quarter ended 30 June 2026, reflecting balanced growth across deposits and advances. Deposits increased 6.94% YoY to Rs. 1,10,411.54 crore, while Gross Advances rose 16.59% YoY to Rs. 86,590.11 crore, indicating healthy credit expansion compared to the previous year.
CASA deposits grew 12.46% YoY to Rs. 35,802.48 crore, supporting a stronger low-cost deposit base, though the CASA ratio improved modestly by 159 bps YoY to 32.43%.
On a sequential basis, CASA moderated by 118 bps QoQ, while deposits and advances continued to show stable quarter-on-quarter growth of 1.50% and 3.90%, respectively. Overall, the bank maintained steady operational momentum with sustained loan growth and a stable liability franchise.
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