India Financials 4QFY26 review: Healthy trends at large banks, momentum slowdown at PSBs, stay selective in NBFCs

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India Financials 4QFY26 review: Healthy trends at large banks, momentum slowdown at PSBs, stay selective in NBFCs

J P M O R G A N Asia Pacific Equity Research

12 May 2026

India Financials

4QFY26 review: Healthy trends at large banks,

momentum slowdown at PSBs, stay selective in NBFCs

We highlight the key trends from the 4Q earnings season for different sub- India Financials

ACsegments of Indian financials: (i) Large private banks: 4Q saw more evidence of Anuj Singla

NIM stabilization and loan growth acceleration; (ii) Mid-tier banks: RoA (91-22) 6157-3590

inflection was sharper vs. large banks on credit cost decline; while AQ trends in anuj.singla@jpmchase.com

Apr have been benign, the impact of the Middle-East conflict could hit with a lag; J.P.Tower,MorganSantacruz(E),India PrivateMumbaiLimited,- 400098,J.P. MorganSEBI

(iii) PSBs continued to gain loan market share, but NII growth slowed and lagged Registration: INH000001873, (91-22) 6157-3000.

JPMe; (iv) NBFCs saw loan growth pickup but with lower margins, we remain Harsh Wardhan Modi

selective on risk from the Middle-East conflict. One important takeaway from the (65) 6882-2450

4Q commentary was PSBs’ (SBIN, BOB) focus on improving yields and NIMs in harsh.w.modi@jpmorgan.com

J.P. Morgan Securities Singapore Private Limited/

the corporate portfolio, which we believe bodes well for large private banks with J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

a more benign competitive landscape. Our preferred picks include ICICIBC (long Morgan Broking (Hong Kong) Limited

term compounder), AXSB and HDFCB (attractive valuations) and SBIN (best Shivansh Puri, CFA

among PSUs) among large banks, and AUBANK (highest earnings growth (91-22) 6157-5077

acceleration) among mid-tiers. Remain selective among NBFCs - prefer BAF.