Indian banks' Q2FY27 earnings seen rising 11%; FCNR deposits may weigh on margins: Kotak
Executive Brief • Key Highlights
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- ✓Indian banks are expected to report 11 percent year-on-year earnings growth in the second quarter of FY27, Kotak said.
- ✓While private sector banks should perform well, FCNR deposits may put pressure on margins.
- ✓"We expect 2QFY27 to be a stable quarter," the report noted, adding that this drag is largely transitory.
Story at a Glance
- Category
- MARKET
- Reported By
- The Economic Times
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
Synopsis
Indian banks are projected to see an 11 percent year-on-year growth in earnings for the second quarter of FY27. The report anticipates that private sector banks will perform better than public sector banks during this period. Deposit growth is supported by significant FCNR inflows, which may temporarily decrease net interest margins. The outlook for asset quality remains stable, with no major signs of deterioration reported.
New Delhi: Indian banks are expected to report around 11 per cent year-on-year growth in earnings in the second quarter of FY27, though foreign currency non-resident (FCNR) deposits could put temporary pressure on their net interest margins (NIMs), Kotak Institutional Equities said in a report.
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The Economic Times
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