New Delhi, Oct. 6 -- Indian banks are expected to report around 11 per cent year-on-year growth in earnings in the second quarter of FY27, though foreign currency non-resident (FCNR) deposits could put temporary pressure on their net interest margins (NIMs), Kotak Institutional Equities said in a report.

The brokerage expects the September quarter to be broadly stable for banks, with net interest income (NII) also projected to grow 11 per cent year-on-year. However, lower treasury income is likely to weigh on banks' non-interest income.

"We expect 2QFY27 to be a stable quarter. We expect ~11% yoy earnings growth. We expect NII to grow 11% yoy and non-interest income to decline due to lower treasury income," the report said.

Private sec...