New Delhi, Feb. 23 -- The earnings of the overall banking sector in the country are expected to register a strong rebound of 17 per cent over the period of FY27-28E, driven by improved loan growth, recovery in margins and stable asset quality, according to a report by IIFL Capital.

The report noted that the tide is turning for banks, with earnings revisions turning positive after many quarters, indicating that the sector is approaching an inflection point.

"We believe banks' earnings are at an inflection point - following 3 per cent growth in FY26, we expect a strong rebound to 20 per cent, 11 per cent and 17 per cent CAGR for private sector banks, public sector banks and overall banks, respectively, over FY27-28E," the report stated. ...