New Delhi, Sept. 1 -- Foreign Currency Non-Resident (FCNR) inflows are expected to weigh on banks' Net Interest Margins (NIMs) by 3-15 bps, however, the additional funding and stronger loan growth could support a 1-3 per cent upgrade in EPS estimates, according to a report by IIFL Capital.

The brokerage house noted, in July, system loans grew 19.3 per cent year-on-year (YoY) and 0.7 per cent month-on-month (MoM) in July 2026. While YoY growth remained strong across most segments, excluding housing and unsecured loans--which are showing signs of improvement--MoM growth was primarily driven by the gold loan and micro, small and medium enterprise (MSME) segments.

If we look at the numbers, as of August 15, system loan and deposit growth st...