New Delhi, Aug. 22 -- Indian banks are approaching a cyclical inflection point, with core Pre-Provision Operating Profit (PPoP) growth expected to accelerate to approximately 17 per cent year-on-year over FY26-FY29E, according to a report by Goldman Sachs.

The anticipated expansion represents a sharp reversal from the moderate earnings observed over the past few years. The projection is underpinned by steady loan growth of around 14 per cent, a 10 basis points recovery in net interest margins (NIM) from an FY27 trough, and benign asset quality, despite near-term macroeconomic and geopolitical uncertainties.

According to the Goldman Sachs report, the financial sector is showing initial signs of operational recovery.

"Our proprietary GS ...