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BFSI: “Stable core performance, benign credit cost aided earnings growth”

ICICIdirect Research 30 Apr 2026 DISCLAIMER

Large private banks have almost concluded their Q4FY26 results, with Kotak Mahindra Bank being the key pending result scheduled on May 2. Broadly, the quarter reflected steady operating performance, with loan growth remaining healthy at ~5% QoQ, supported by seasonality as well as a visible tilt toward corporate lending, aiding overall balance sheet expansion. On the deposit side, deposit traction remained resilient, with seasonally strong traction witnessed in CASA accretion supporting funding mix.
NII growth trailed credit growth, primarily due to lagged transmission of deposit repricing and an adverse shift in loan mix toward lower-yielding corporate segments, resulting in some pressure on margins barring few regional banks with higher proportion of fixed rate gold loan which supported yields.
Operating performance remained largely stable, with controlled opex trends across most banks. Provisions were benign at a system level, supported by stable asset quality and recoveries, which has led to growth in earnings.

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