Muted loan growth, margin woes may weigh on listed banks' Q1 profits

Profitability of listed commercial banks in India is expected to take a hit in the quarter ended June 30 (Q1FY26), with analysts estimating a 4.7 per cent year-on-year (Y-o-Y) decline in net profit. 

On a sequential basis, profit after tax may decline by 2.2 per cent, due to pressure on interest margins and muted credit growth.Estimates compiled from Bloomberg data for 18 listed banks show that net interest income (NII) — the difference between interest earned and interest expended — is likely to register only a modest growth of 2.2 per cent Y-o-Y in the quarter. 

Anil Gupta, cogroup head,