16 Sep 2025 | 3 Mins Read
Bank sector may rebound in H2 with growth and margin recovery
Flipitmoney
Credit growth in India's banking sector may recover to 12-13% by end FY26, driven by NBFCs, mortgages, and falling interest rates. Net interest margins (NIMs) will bottom out in Q2 or Q3 after rate cut impact before sequentially improving. Private sector banks remain a safer bet due to stronger balance sheets and margin protection.