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Analysts expect PSU banks to outpace private lenders in Q2 profit growth
Motilal Oswal Financial Services expects private banks to deliver 24.0% annual PAT growth versus 27.0% for PSU banks, supported by factors including FCNR (B) inflows and deposit growth at HDFC Bank.
LiveMint Markets, citing Motilal Oswal Financial Services, said analysts are bullish on banking-sector results as the corporate earnings season begins and focus shifts to Q2FY27 performance.
The outlet said PSU banks are expected to show resilient margins and stronger profit growth, while private lenders face an adverse impact to net interest margins. It added that HDFC Bank is likely to benefit from strong deposit growth aided by FCNR (B) deposits, and Punjab National Bank may see marginal NIM improvement.
According to LiveMint Markets, analysts expect private banks to post 24.0% annual growth in profit after tax, compared with 27.0% for PSU banks, which the outlet said points to PSU stocks outperforming on profit growth. It also noted Union Bank of India may see modest increases in credit cost with some asset quality improvement, while Axis Bank could see marginal declines in credit costs alongside reduced technical slippage.