New Delhi, Aug. 25 -- Strong loan growth, improving asset quality and solid capitalisation are supporting the resilience of Indian banks, with HDFC Bank and ICICI Bank emerging as the strongest performers among major lenders, according to a Bank of America (BofA) Global Research report.

The report, said Indian banks delivered strong first-quarter FY27 results, with loan growth helping offset pressure on margins. It noted that the sector's average net profit rose 13.4 per cent year-on-year in the quarter.

Loan growth also showed a significant recovery. Average loan growth reached 18 per cent year-on-year in the first quarter of FY27, while average total assets and risk-weighted assets grew 13.6 per cent and 12 per cent, respectively.

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