Mumbai, May 25 -- Private sector banks are expected to post stronger earnings growth over the next two years compared to public sector banks despite similar loan growth trends, according to a report by Antique Stock Broking.

The report stated that loan growth for both private and PSU banks is expected to converge at around 14 per cent year-on-year during FY26-28.

However, Antique Stock Broking said private banks are likely to deliver significantly better earnings performance during the period due to relatively stable margins and lower earnings risks.

It stated, "FY26-28E earnings growth to be higher for private banks as compared to PSUs despite loan growth convergence".

According to the report, earnings growth for private banks is exp...