VERIFIEDET Markets·6 Oct 2026neutral

Indian banks face a Q2 paradox: FCNR boosts loan growth but margins shrink

AI Summary

·Indian banks are experiencing strong loan growth in Q2, partly due to FCNR(B) deposit inflows.
·Despite loan growth, bank margins are expected to remain under pressure.
·Analysts anticipate healthy earnings growth driven by reduced credit costs and stable asset quality.