Banking sector outlook improves with strong loan growth forecast
pre-market1 source ↓written by the desknot a recommendation
Elara Capital projects strong loan growth in Q3 FY26, driven by improved net interest margins and lower slippages in unsecured and MFI loans. While credit costs are supported by steady recoveries, weak deposit flows may pressure NIMs and FY27 earnings. PSU banks are expected to remain steady, with ICICI, Kotak, and SBI likely to outperform.
• Loan growth forecast: Strong in Q3 FY26
• NIMs: Improved but under pressure
• Key players: ICICI, Kotak, SBI likely to shine
Not investment advice. For informational purposes only.