Indian banks likely to sustain healthy growth in FY27: Bernstein
Bernstein projects healthy growth for Indian banks in FY27, driven by stronger lending, easing margin concerns, and stable asset quality. Private banks are also expected to continue narrowing the growth gap with their public sector counterparts.
What this means
This forecast signals continued expansion in credit markets and potentially improved profitability for banks. Favorable macroeconomic conditions and effective bad loan management are contributing to a positive outlook. The narrowing growth gap suggests increased competition and innovation across the sector, with private banks gaining market share.
Most affected: Indian banking sector, Credit growth, Profitability
Key takeaway: Banks should capitalize on sustained credit demand and leverage improving operational efficiencies to drive portfolio expansion while managing competitive pressures.
Get stories like this in your inbox every morning
Free daily brief — rates, RBI updates and the banking stories that matter, in 3 minutes.
More in this briefing
- RBI proposal to curb NBFCs' revolving credit may choke MSME funding, says industry body FISME
- Carlisle Investors to approach PMO over alleged HDFC Bank mis-selling
- Three major Indian banks raise over $1.85 billion in offshore bonds, signalling strong global market participation
- Food prices on the rise, domestic demand keeps economy strong
- Bank holiday today, 26 August: Will SBI, HDFC and others remain open on Eid-e-Milad-un-Nabi?