Indian banks reported muted earnings in the first half of FY26, with net profits rising only 2.5% despite an 11.3% credit expansion. This was primarily due to a compression in net interest income as banks passed on policy rate cuts to borrowers while their cost of funds remained elevated. Private banks outperformed public sector banks due to higher other income.
Pankaj Tibrewal sees stronger top-line growth driving India’s next earnings cycle
Indian companies are poised to navigate input cost pressures and sustain growth, with the upcoming earnings season expected to be the next market trigger. Experts
June 30, 2026