Bank stocks to buy, Aug. 4 -- The Indian banking sector delivered a measured performance in the first quarter of FY26, marked by diverging trends across private, mid-sized, and public banks. Analysts describe the current environment as a "recalibration phase" rather than a period of distress, with the sector gradually adjusting to a softening interest rate environment and delayed deposit repricing.

While private banks showed resilience, mid-sized lenders faced pressure, and public sector banks sought shelter in treasury gains and asset quality improvements.

Private banks posted a mixed performance in the first quarter of FY26, with a few reporting strong earnings while most public sector banks (PSBs) witnessed some weakness. A key conce...