New Delhi, Oct. 6 -- Indian banks are likely to see a pickup in earnings momentum during the second quarter of FY27, supported by strong credit growth and stable or lower provisioning costs, even as elevated liquidity and a changing deposit mix are expected to keep pressure on net interest margins (NIMs), according to a Systematix Research report.

The brokerage expects earnings growth across its banking coverage universe to accelerate to 14.9 per cent year-on-year in 2QFY27, excluding IndusInd Bank, with advances growth and controlled credit costs providing key support.

"Margins to remain under pressure due to increased liquidity," Systematix Research said, adding that NIMs across its coverage universe are expected to remain lower or br...