New Delhi, June 30 -- Recent regulatory measures are expected to help India's banking sector navigate risks arising from the West Asia conflict and potential El Nino conditions, according to a report by Nuvama.

The report said that while macroeconomic uncertainties warrant caution, regulatory support in the form of Foreign Currency Non-Resident (Bank) deposit, or FCNR(B), relaxations and the Emergency Credit Line Guarantee Scheme (ECLGS) should provide countercyclical support to growth, margins and asset quality.

It stated, "Although risks from the West Asia conflict and El Nino warrant caution, recent FCNR (B) and ECLGS measures shall provide countercyclical support to growth, margins and asset quality".

According to the report, the f...