MUMBAI, Jan. 5 -- Indian banks are set to report a steady recovery in business momentum in the December quarter (Q3FY26), led by a pick-up in credit growth, stable asset quality, largely better margins, and strong capital buffers, according to brokerages.

Analysts have, however, cautioned that stretched liquidity conditions and weak deposit mobilization could emerge as key pressure points as loan growth continues to outpace deposits.

Leading private sector banks including HDFC Bank, ICICI Bank, and YES Bank are set to kickstart the third-quarter earnings season from 17 January.

Non-food credit for the banking sector grew almost 12% on year as on 15 December, according to latest data from the Reserve Bank of India, driven by a consumpti...