New Delhi, June 29 -- El Nino conditions may have some impact on agricultural loans, but are unlikely to cause major disruptions to the banking sector, while overall credit costs are expected to remain stable in FY27, according to a report by Yes Securities.

The report said it does not expect any material rise in credit costs in FY27 compared with FY26. It also does not foresee any significant one-time impact from the implementation of Expected Credit Loss (ECL) norms in FY28.

According to the report, agricultural loans remain one of the areas to watch as weather conditions evolve.

"El Nino may impact some agri loans but past experience tells us that this may not be overly disruptive, although we will monitor the possibility of a Super...