Results preview: Bank profits to see sharp dent in Q2 on margin pressure

Credit costs may also weigh on margins, given the stress in the unsecured loan book, bankers said

Commercial banks are heading for one of the worst quarters in recent times as the net profit of listed commercial banks is likely to shrink by 18.7 per cent year-on-year (Y-o-Y) in the second quarter of 2025-26 (Q2FY26) due to continued pressure on interest margins and subdued credit growth, according to analysts’ estimates compiled by Bloomberg. Sequentially, profit after tax (PAT) may contract by 9.8 per cent over Q1FY26.

 

Anil Gupta, co-group head, financial sector ratings, Icra, said the volume growth in credit was not offsetting the pressure on net interest margin (NIM) in the second quarter, denting the bottom