New Delhi, Oct. 11 -- India's banking sector is expected to report healthy profit after tax (PAT) growth in Q2FY27, but funding pressures could persist despite comfortable system liquidity, according to a report by JM Financial.

The report noted that banks recorded an acceleration in loan growth to 19.1 per cent and deposit growth to 15.8 per cent year-on-year, supported by increased mobilisation of Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits.

Quarterly, deposit growth stood at 5.8 per cent in Q2FY27, pushing the aggregate credit-deposit (CD) ratio up by around 70 basis points to 86.7 per cent, it said.

Highlighting FCNR (B) as a "key driver," the report noted, "Growth momentum strengthened further in Q2FY27. Large private ...