New Delhi, June 29 -- India's banking sector is poised for a sharp rebound in profitability in FY27, supported by stable net interest margins (NIMs), healthy credit growth and contained asset quality risks, according to a sector report by YES Securities released here on Monday.
After a subdued FY26, the brokerage expects profit after tax (PAT) growth for its banking coverage universe to recover strongly in FY27, aided by an improvement in net interest income (NII) and sustained loan demand across corporate, MSME and retail segments.
The report forecasts NII growth to accelerate to 16.1 per cent in FY27, up from 5.3 per cent in FY26, while PAT growth is expected to improve from 6.4 per cent in FY26 to 14.2 per cent in FY27. Profit growth i...