New Delhi, July 7 -- Indian banks are expected to report a steady performance in the first quarter of FY27, with earnings remaining broadly stable as pressure on net interest margins (NIMs) and weaker non-interest income continue to weigh on profitability, according to a report by Kotak Institutional Equities.

Operating Environment Shows Improvement

The brokerage said the operating environment for banks has improved compared with the previous quarter, reported ANI.

Retail credit quality remains resilient, corporate balance sheets are conservatively leveraged, and government-backed schemes such as the Emergency Credit Line Guarantee Scheme (ECLGS) and the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) continue to s...