1Q27 preview – Healthy quarter but focus on growth sustainability

研报英文原文证据摘录

1Q27 preview – Healthy quarter but focus on growth sustainability

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Banks - India

1Q27 preview – Healthy quarter but focus

on growth sustainability

Price Objective Change

1Q27 – Expect healthy earnings growth for private banks 06 July 2026

India banks' 1Q27 results are expected to be broadly steady, supported by better-than- Equity

expected loan growth, flat to softer NIM and slight inch up in credit cost. While macro India

indicators continue to point to resilient growth, Investors are likely to focus on Banks

sustainable loan growth and look through 16-18% YoY growth reported in this qtr. We Madhur Sharma >>

expect focus to be on – 1) Impact of West Asia crisis on growth/AQ, 2) NIM outlook with Research Analyst

expectation of rate hike by year end, 3) FCNR deposit mobilization and 4) Update on BofAS+91 22India6632 8945

CEO succession for HDFC & Kotak. We continue to prefer big 4 pvt banks and SBI, madhur.sharma2@bofa.com

supported by narrowing loan growth differential, potential benefits from FCNR inflows

and a higher-rate environment, superior asset quality and attractive valuations. We also

revise POs for select companies in our coverage (Exhibit 1).

Key Focus – Growth guidance, FCNR and CEO transition Exhibit 1: PO change summary

We are revising up PO for ICICI, BhB and IDFCHDFC/ ICICI/Axis/Kotak – Investors would watch for loan growth guidance and FCNR First bank

mobilization. For HDFC, focus will be on update on CEO term renewal.

Rtg New PO Old PO

Au/ IDFC/BhB – likely to seen NIM contraction of 10-20 bps led by funding cost ICICI Buy 1,600 1,500

pressure, high base and seasonality. Bandhan Buy 220 195

IDFCFB Neutral 85 75

RBL – Likely to see strong growth and moderation in funding cost higher NIM but focus Source: BofA Global Research estimates