loading
loading
Listen to this article in summarized format The quarter was marked by strong capital inflows for the banking system through the RBI's 2026 Foreign Currency Non-Resident-Bank (FCNR-B) deposit swap scheme, which collected over $127 billion, exceeding expectations. This is expected to support deposit growth, which has not kept pace with the pick-up in credit demand for the past several quarters. On the flip side, it is likely to affect the CASA (current account savings account) ratio and net interest margins (NIMs). Read more: Sebi extends IPO-size flexibility on the back of soaring primary market activity "Provisional business updates for 30 banks show loan growth accelerating sharply to 19.1% year-on-year and 6.6% sequentially, and deposit growth to 15.8% year-on-year and 5.8% sequentially, aided meaningfully by the FCNR-B mobilisation drive," noted JM Financial Institutional Securities in a preview report. The broking firm expects net profit of the banks under its coverage to grow by 12% year-on-year. Read more: Anand Rathi Share and Stock Brokers Q2 results: Profit jumps 50% YoY to Rs 42 crore, revenue rises 20% "NIMs may remain compressed in the September quarter but should gradually recover in the second half as banks retire high-cost liabilities and deploy liquidity into loans," said Global Financial Services in a preview report, adding that banks with high floating-rate loans may benefit from the recent rate hike. For investors, management commentary by banks on FCNR-related deployment, trends in fee income and the impact of the recent rate increase will be crucial. "Key metrics to monitor are deployment trajectory and yields on FCNR deposits, impact of rate hike, upcoming ECL transition and any stress in SME and unsecured loans," stated JM Financial in the report. Among the top private sector banks, Axis Bank is expected to report the highest YoY net profit growth of 41% for the September quarter, followed by Kotak Mahindra Bank with a 29% increase. For SBI, profit is likely to grow by 11.2%. All three banks expected to report double-digit NII growth. For non-banking financial companies, performance is expected to remain strong, driven by growth in disbursements and stable asset quality. "Resilient retail demand and a gradual recovery in loan against property should support diversified financiers," said JM Financial in a preview report. The broker expects 20% YoY growth in aggregate assets under management. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
document fetched 2026-10-14 03:04