Loan growth seen healthy; margins under pressure
Brokerages expect the bank’s loan book to expand 12–13% YoY, supported by steady disbursement momentum.
According to Nuvama, loan growth is pegged at 12.4% YoY and 2.7% QoQ, while YES Securities forecasts around 2.5% sequential growth.
Phillip Capital anticipates 4.2% QoQ loan growth and 2.8% QoQ deposit growth, indicating healthy traction in core banking operations.
However, margins may remain under pressure. Nuvama expects NII to rise just 5.7% YoY (and decline 0.7% QoQ), while YES Securities flags a sequential dip in net interest margin (NIM) due to a decline in yields on advances.
Motilal Oswal also expects margins to stay subdued, with a slight deterioration in asset quality.
Slippages stable; provisions may fall
On the asset quality front, YES Securities expects slippages to remain broadly stable, with provisions declining sequentially.
Phillip Capital believes credit costs will begin to normalise, supporting bottom-line resilience despite operational pressures. Motilal notes that cost ratios are expected to remain under control, even as overall business growth remains healthy.
Investors will closely watch management commentary on FY26 guidance, particularly around credit growth, margin outlook, and the asset quality trajectory. Any updates on loan book repricing post repo rate adjustments and competitive intensity in deposits will also be key monitorables.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)