New Delhi, April 6 -- India's banking sector is expected to sustain credit growth momentum in the near term, though margin pressures are likely to persist, according to a research report by Systematic Institutional Equities.

The report highlights that advances growth remains robust, supported by broad-based traction across segments. "The strong advances growth momentum that got built at the end of 3QFY26 has sustained in Q4FY26," it noted, adding that system-level advances grew 13.8 per cent year-on-year as of mid-March 2026.

However, growth is likely to moderate going forward amid macro headwinds. The report cautioned, "Growth momentum in advances is expected to slightly moderate, arising from higher inflation and slowdown in economy."...