New Delhi, Oct. 10 -- The corporate earnings season has begun and experts are bullish on banking sector, with some expecting robust business growth led by FCNR (B) inflows, improvement in net interest margins (NIMs) and profit. Public Sector Banks (PSBs) are likely to report resilient margins, but private players are expected to see adverse impact to NIMs, according to Motilal Oswal Financial Services which keeps ICICI, State Bank of India, Kotak Mahindra Bank, and AU Bank among its top picks.

HDFC Bank is likely to see strong deposit growth aided by FCNR (B) deposits. NIMs are likely to improve marginally for Punjab National Bank (PNB). Union Bank of India may see modest increase in its credit cost and some improvement in asset quality....