Bank Stocks To 'Buy': Systematix Lists HDFC Bank, SBI Among Others Ahead Of Q2 Results — Check Full List

As per RBI data, banking system Advances expanded at 3.2% QoQ and 10.4% YoY as of Sep 19, 2025. RBI’s sectoral deployment of bank credit shows an uptick in industrial segment advances from 5.5% YoY in Jun 2025 to 6.5% in Aug 2025 led by micro and small segment which grew by 20.9% YoY..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Report.Q2 FY26 is expected to be a muted quarter in terms of profitability with most banks facing margin pressure and weak treasury income. Banks have taken both, savings account and term deposit rate cuts which are expected to help offset the adverse impact of repo rate cuts on margins. However, the decline in cost of deposits/funds will not fully offset the fall in yield on advances resulting in a decline in net interest margins. The profitability is expected to remain muted but to some extent will be supported by-Improved sequential advances growth,Higher fee income growth (in line with growth in advances),Lower slippages and provisions. However, we see the tables turning in H2 FY26 on expected-Improved growth momentum in advances, arising from lower interest rates, push in consumption due to cut is GST rates, higher tax limits,Net Interest Margins to see an improving trend as deposits cost is expected to trend lower with reprising of existing book, lower CRR to free up capital for generating yield, normalisation of unsecured segment slippages, resulting in lower credit cost. While there could be near-term pain, our long-term growth outlook for the banking sector remains positive. .Click on the attachment to read the full report:.Cement Q2 Results Preview: Higher Prices To Boost Margins Projects Axis Securities; UltraTech Among Top Picks.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bank Stocks To 'Buy': Systematix Lists HDFC Bank, SBI Among Others Ahead Of Q2 Results — Check Full List

While there could be near-term pain, long-term growth outlook for the banking sector remains positive, says Systematix.

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