New Delhi, Oct. 15 -- Investors tracking banking stocks ahead of the September-quarter earnings season will be watching loan growth, net interest margins (NIMs), deposit mobilisation and asset quality for clues about the sector's earnings outlook. While strong credit demand is expected to support profitability, higher funding costs and pressure on margins could create differences in performance across banks.

Experts expect healthy earnings growth in Q2FY27, supported by expanding balance sheets and relatively stable asset quality. However, they flag near-term pressure on private banks' margins due to inflows of foreign currency non-resident bank (FCNR-B) deposits.

Brokerages see banks reporting healthy earnings growth in Q2FY27, driven ...