Emkay sees Indian bank profits rising 25.4% in Q2FY27
In short
Emkay Research says Indian banks may post a 25.4% rise in net profit in Q2FY27. It also says loan growth is still healthy, while higher foreign currency deposits may squeeze lending margins.
This matters for bank earnings and lending spreads. The report says system growth may slow as FCNR-B funding returns to normal, but it does not name which banks will benefit or be hit the most.
What the reporting says
According to Emkay Research, Indian banks might report a 25.4% year-on-year rise in net profit in Q2FY27. The report says higher foreign currency deposits could pressure lending margins, while healthy loan growth and lower provisions for loan losses support income. Overall banking-system growth is expected to moderate as FCNR-B funding normalizes, but the exact impact on individual banks is not stated in the available reporting.
Why it matters
Emkay Research’s outlook points to stronger profits for Indian banks in Q2FY27, driven by healthy loan growth and lower provisions, while higher foreign currency deposits may weigh on margins. The note also expects banking-system growth to moderate as FCNR-B funding normalizes. The immediate consequence is a mixed earnings setup for lenders, with profitability supported but margin pressure still a risk.